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TOPSTORIES CABLE NEWS: TOWERS OF Stung by high food BABBLE costs, caterers —Valerie Block pass along the pain on the media Page 13 PAGE 2 ® Jumpsuits spring into the spotlight as retailers seek the VOL. XXIV, NO. 37 WWW.CRAINSNEWYORK.COM SEPTEMBER 15-21, 2008 PRICE: $3.00 season’s must-buy DESPERATE TIMES PAGE 3 Serena Williams could score more Losers abound NY banker comes points this fall NEW YORK, NEW YORK P. 6 in Lehman’s fall to rescue WaMu REPORT Workers, landlords, New chief will face REAL ESTATE shareholders and subprime mortgage, customers at risk; credit card losses; rivals stand to gain buyout possible

BY AARON ELSTEIN BY DANIEL MASSEY

FINANCIERS turn decidedly last week, Lehman Brothers it’s late in the game and the stingy as ranks thin P. 22 Holdings Inc. shares plunged undersized point guard just got DEVELOPERS learn to play 77% as the firm posted the handed the ball. by new rule book P. 23 biggest loss in its 158-year histo- Alan Fishman,who starred on ry and investors scoffed at the re- NO ONE is the hardwood at Brooklyn’s Eras- BUILDERS get the cold buying CEO shoulder P. 24 covery plan laid out by Chief Ex- mus Hall High School and ecutive Richard Fuld. Richard ALAN FISHMAN will Brown University, last week was Fuld’s try to bring WaMu Lehman’s demise as an inde- recovery back from the brink. named chief executive of belea- pendent firm is a virtual certain- plan. guered Washington Mutual. He bloomberg news BUSINESS LIVES ty.And with an acquisition by an- buck ennis now needs the equivalent of a COSMETIC CHANGES other firm likely to result in four-point basketball play in the Face-llifts cutbacks rivaling those seen at final seconds to bring the nation’s fall with Bear Stearns Cos. after J.P.Mor- largest thrift back from the brink. economy; gan Chase absorbed it, the fallout The former president of Inde- injectibles will be staggering. pendence Community Bank is get a big Topping the list of losers are both well-known and well-re- boost Lehman’s 25,000 employees, spected in Brooklyn for his man- P. 37 roughly a quarter of whom work agement skills and charitable in New York. Last year, the firm’s work. But with losses from sub- global payroll totaled nearly $10 prime mortgages and credit cards billion, which works out to an av- stacking up, and WaMu shares AT DEADLINE erage of $332,000. trading below $3 for the first time Employees, who own 30% of since 1990, the 62-year-old FIRST THERE WAS CLIENT 9. their firm’s stock, have already banker faces the challenge of a NOW THERE’S HOSPITAL seen their wealth shrivel drasti- lifetime. Friends and former col- Executive 2. As speculation cally, with the 95% drop in leagues say he’s the perfect man swirls around the identity of See LOSERS on Page 8 See NY BANKER on Page 8

the hospital executive named charts: lindström bekka in the criminal complaint against Assemblyman Antho- ny Seminerio, industry insiders say the scenario outlined in the complaint closely matches the NYC steps up work in rare diseases situation at MediSys Health Network.They believe that Hospital Executive 2 may be tients are plagued by disfiguring David Rosen, chief executive Research can lead tumors of the nervous system. of Jamaica, Brookdale and to other medical Called neurofibromatosis, it is Flushing hospitals, which commonly referred to—though make up MediSys. Mr. Rosen advancements erroneously—as Elephant Man’s did not respond to requests disease, the subject of a 1980 film for comment. about 19th-century Londoner BY GALE SCOTT John Merrick, who was exploited KATIE HOLMES, WHO IS as a medical curiosity and forced to MAKING HER BROADWAY researchers at New York Uni- make a living as a sideshow freak debut in the upcoming Arthur versity Langone Medical Center because of his disfigurement. See AT DEADLINE on Page 2 are closing in on a treatment for a As a result of NYU’s research, a rare genetic disease in which pa- clinical trial of a promising drug to treat the illness is about to begin. “This is the first time in hundreds

37 of years there has been anything

5 new for treating this devastating disease,” says NYU’s Dr. Matthias Karajannis, a pediatric oncologist

whose team is leading the national buck ennis trial. NEWSPAPER DR. MATTHIAS KARAJANNIS, a pediatric oncologist at New York University Langone Medical See NYC on Page 8 Center who studies the rare genetic disease neurofibromatosis, examines a young patient. 71486 01068 0 CNYB 09-15-08 A 2 9/12/2008 7:43 PM Page 1

AT DEADLINE

Continued from Page 1 extinction: They’ve formed a Miller play All My Sons,is trade alliance. Approximately 25 turning out to be a bigger box- bookstores in the five boroughs office draw than theater have banded together to create observers thought. Producers the Independent Booksellers of of the drama—which starts New York City. IBNYC will previews Sept. 18—will be promote all indie bookstores, announcing today that the whether or not they’re show has $3.5 million in contributing members, with a advance sales. Though the citywide map detailing locations number pales in comparison of some 60 stores, which it plans with the roughly $10 million to distribute in hotels and other advance that Julia Roberts tourist spots.The group will also brought in for her first turn on launch what it hopes will be an Broadway two years ago in annual weeklong celebration of Three Days of Rain, it’s still independent bookselling in impressive for a play.The December. CATCH OF THE DAY: production has been dogged Caterer Paul Neuman MORE THAN 5,000 TECHIES ARE offers menu options for for weeks by gossip that ticket different budgets. sales were unusually weak for a COMING TO NEW YORK THIS play with a major celebrity. week for Web 2.0 Expo, an important trade show taking SUPPORTERS OF THE HIGH LINE place in the city for the first CLAIM THAT PRELIMINARY time.The four-day event at the revisions on Related Cos. plans Javits Center, co-produced by for the sprawling Hudson Yards O’Reilly Media and TechWeb, site may endanger preservation expects to showcase new of the elevated freight-rail line. products from 125 tech In August, the preliminary plan companies. Highlights include that Related presented to a high-profile venture capitalist community group failed to show Fred Wilson’s keynote speech a piece of the High Line known about the history of Silicon

as the spur on the eastern half of Alley and a panel discussion on neff david the yard. In addition, documents starting a business in the Alley filed as part of the rezoning that features David Rose, a process reveal that one of serial entrepreneur, and Kevin Related’s towers on the western Ryan, former DoubleClick chief end of the yard would hang over executive. the High Line. Related had no Caterers bite back comment, but the Metropolitan SHERATON HOTELS IS Transportation Authority, PROMOTING ITS NEW WI-FI which owns the site, says it has service in its lobbies worldwide Food biz employs new ideas to counter price hikes an agreement with the company by making the technology to preserve the entire High available for free in Central Line, which is being turned into Park’s Sheep Meadow today BY JOYCE HANSON a park. through Sept. 30.The hotel chain is partnering with WiFi ratatouille-stuffed zucchini boats, grilled salmon, fried chicken and vegetarian NEW YORK’S BELEAGUERED Salon and Microsoft. Sheraton moussaka were a few of the items on the lunch menu last week at a corporate event prepared by INDEPENDENT BOOKSTORES and PepsiCo will repeat the Manhattan-based caterer Paul Neuman. are trying an old-fashioned promotion for the entire remedy to try to stave off summer of 2009. A year ago, those same food items would have cost the client about $11 a plate. Now Mr. Neuman is charging $13, and next year he plans to raise the price another 8%. “We’re at the mercy of the markets, trying to charge prices that protect us against inflation,” THIS WEEK IN CRAIN’S says Mr. Neuman. “But we also need to make customers feel like we’re not trying to take advantage of the situation.”

SMALL BUSINESS ------11 With rising food prices and volatile fuel costs cutting into profits, New York City-based food-service companies, like most businesses these days, are passing along their higher costs to VALERIE BLOCK ------13 their clients. But price adjustments are not enough. Caterers have also been forced to take THE INSIDER------14 See CATERERS on Page 9

WEEK IN REVIEW ------16 NEIGHBORHOOD JOURNAL------17 Volume rises over Portable 41 THE WEEKS AHEAD ------18 REPORT: through. But it won’t happen quiet- is expected to urge the Federal REAL ESTATE ------19 Urban and ethnic ly, because stations targeting Communications Commission to radio stations fear African-American and Spanish- examine the system’s effect on mi- CLASSIFIEDS ------34 language listeners have seen their nority stations. undercounting rankings decline precipitously in “What gets put in place in the BUSINESS LIVES------37 preliminary surveys, while those for New York metropolitan region will HOME FRONT------39 BY MATTHEW FLAMM classic rock and Top 40 stations have become the gold standard,” says CORPORATE LADDER------41 soared. City Council Speaker Christine arbitron plans to make its Last Tuesday, the New York Quinn. EXECUTIVE MOVES------41 Portable People Meters the official state attorney general’s office began 43 Less diversity after rollout BOB LAPE ------43 yardstick of audience measurement a formal inquiry into the system’s in New York radio on Oct. 8, allow- impact on minority broadcasters. critics say they’re already seeing vol. xxiv, no. 37, september 15, 2008—Crain’s New York Business (issn 8756-789x) is pub- lished weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Period- ing the research company to retire On Wednesday,executives from ur- the impact of the new system in icals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address its old paper-and-ink diaries from ban and Spanish-language stations, Philadelphia, where three stations changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a the nation’s biggest market. who say the PPM sample panels catering to urban listeners have copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents The plan—part of a rollout in don’t represent their listeners, flipped to PPM-friendly rock for- copyright 2008 by Crain Communications Inc. All rights reserved. eight markets, including Chicago squared off against Arbitron at a mats. Even so, Arbitron shows no and Los Angeles—is likely to go City Council hearing. The council sign of changing course,as it did last

2 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 3 9/12/2008 6:05 PM Page 1 Might as well jump City beefs bers in silk and soft cotton. will pick up some jump- Designers, stores “They will be more dis- suits this year.” hope new take on creet going forward,” Ms. Specialty retailer Scoop, Scafidi says. which has 12 locations na- up its ’80s staple will fly off Both apparel retailers tionwide, four of them in spring shelves and designers hope that Manhattan, will also stock the jumpsuit will be one of the suits. the necessary garments defense BY ADRIANNE PASQUARELLI that will revive consumer Jet set spending. In New York “we believe in the jump- ladies, the jumpsuit has returned. last week, collections from suit,” says Shira Lauter, Payouts surge, with And,just like a paratrooper,it’s tak- Malan Breton, 3.1 Phillip Scoop’s general merchan- ing the fashion world by storm. Lim, Matthew Wil- dising manager. “It’s a very more big-money Both new and established de- liamson, Cynthia Steffe chic ’70s influence—the signers featured the one-piece item and Proenza Schouler of- jet-set woman.” The New lawsuits looming in a variety of styles—from strap- fered it in muted shades York-based chain has or- less ones with shorts to full-length and bright colors alike. dered several styles,includ- BY HILARY POTKEWITZ looks with halter necks—as part of “Women want some- ed ones with shorts or their spring 2009 sport- and for- thing to wear out that’s harem pants and camisole, after years of chipping away at mal-wear collections. While many not a dress, and this is halter or long-sleeved the amount New York pays in legal at the Mercedes-Benz Fashion very flattering,” says tops. claims, the city Law Department Week played it safe last week, Mr. Breton, a third- But the move didn’t saw that improvement vanish in one showing floral prints and draped season Project Run- strike everyone as fell swoop this year in several settle- dresses, the jumpsuits made a bold way contestant fashion-forward. ments stemming from the cata- statement. whose spring col- Some retailers strophic Staten Island ferry accident Absent from runways since the lection included a complained that in 2003. 1980s, the suits caused a sensation. formal black this particular The squeeze will continue as the And in a dismal retail environment, halter jumpsuit throwback will agency deals with large lawsuits fashion designers must impress with wide pan- not be a bank- from other fatal incidents—all while consumers to help woo them back els of Chantilly able must- the city confronts a profound budg- into stores. lace. have, like et deficit. “We need something to tempt The miniskirts or women to actually buy rather than celebrity circuit gladiator Big payouts ahead return to their closets,” says Susan is on board; ac- sandals. this year, the office of Corpora- Scafidi,an intellectual property and tress Blake “Jump- tion Counsel Michael Cardozo has fashion law professor at Fordham Lively from suits might been slammed with lawsuits claim- University School of Law. “This is Gossip Girl was look fine ing damages of at least $550 million a garment not very many people recently pho- walking down connected to these incidents alone: still have hanging around from the tographed the runway, two crane collapses, a steam-pipe ’80s. It’s certainly something they’d wearing a green but a customer explosion, a construction fire at have to buy brand-new.” one-piece. won’t buy three or four Ground Zero and the police shoot- Lord & Taylor KEMPNER-WORTHY: of them,” says Stacey ing of Sean Bell. Pads be gone plans to order jump- Designers showed softer Pecor, founder of Olive Michael Hess,who served as cor- women’s apparel sales were suits for the spring. styles in a variety of colors. & Bette’s, which has poration counsel in the Giuliani ad- down more than 4% for the year The 47-store chain be- four boutiques in Man- ministration and is now a managing that ended in July, according to gan selling Ms. Steffe’s hattan. “[A store] can partner in Giuliani Partners, says: NPD Group Inc. Same-store sales clothing late last year only sell a few.” “To have all these cases come at also declined. For example, same- and might include the Others voiced a nagging once? That’s unusual, and they store sales at Seattle-based Nord- navy jumpsuit that she concern that could affect couldn’t have come at a worse time.” strom fell 6.4% for the 12 months debuted last week. 4.1% jumpsuits’ selling power. The mayor’s office is setting aside through August, according to Fi- “We liked the pant op- DECLINE in sales of “They’re pretty diffi- more money than ever to defend the nanco Inc. tions this year, from skinny women’s apparel for cult for the bathroom,” city and cover the cost of lawsuits— The latest jumpsuits deviate to wide—and of course the the 12 months through says Wendy Williams, nearly $800 million for fiscal 2009, from the shoulder pads and cinched jumpsuit is part of that,”says July. Same-store sales editor of New York Cool. an increase of over 33% from last waists popular two decades ago.In- LaVelle Olexa, senior vice were also down. year, according to the Independent stead, designers created softer vari- president of fashion merchan- COMMENTS? Budget Office. [email protected] See CITY’S on Page 9 ations, like off-the-shoulder num- dising at Lord & Taylor. “We gettyimages

despite the improvements Arbitron “Last time, we found ourselves has made over the last year,the sam- caught between two sets of data,”says People Meter controversy ple panels are still too small. Dan Halyburton,general manager of “Roughly 600 meters account for Emmis New York, which operates about 3 million African-Americans urban stations WRKS and WQHT- November when it delayed the roll- it’s going to be a lot whiter than it is FM and WPAT-FM. in the market,” says Deon Lev- FM, as well as new rock station out until this fall. now,” says Frank Flores, general Preliminary PPM ratings for ingston, general manager of Inner WRXP-FM, which this year flipped “[The PPMs] are going to manager of Spanish Broadcasting August, which came out last week, City Broadcasting Corp.’s WBLS from urban-oriented smooth jazz to change the landscape of radio, and System New York stations WSKQ- did not make urban and ethnic ra- and WLIB-AM. “That’s a joke.” take advantage of the PPMs. dio operators feel any better. Urban But Arbitron’s critics say the station WRKS-FM, which was Arbitron defends system PPMs aren’t ready for prime time. RATINGS ROLLER COASTER No. 1 among persons 25 to 54 years arbitron maintains that the “We think that at some point Ar- 600 PORTABLE PEOPLE old in the spring 2008 survey— PPM panels are as diverse and repre- bitron is going to realize it dug itself METERS 1 2 account for STATION DIARY RANK METER RANK which used diaries—was ranked sentative as the diary panels were, into a hole trying to rush this thing about 3 million WRKS-FM (URBAN) 1. 5. fifth in the PPMs.Venerable urban and that the differences reflect the to market,” says James Winston, ex- African- station WBLS-FM fell from No. 2 greater accuracy of the electronic de- ecutive director of the National As- WSKQ-FM (SPANISH) 2. 6. Americans to No. 11. vices,which pick up signals automat- sociation of Black Owned Broad- WBLS-FM (URBAN) 2. 11. Meanwhile Top 40 WHTZ-FM ically.Diaries rely on memory,which casters. “They’ll see it’s in [the WHTZ-FM (TOP 40 HITS) 4. 1. went from No.4 in the spring to No. may favor listeners’preferred stations company’s] best interests to slow WLTW-FM (SOFT ROCK) 4. 3. 1, and classic rock WAXQ-FM tied over those they actually tune in to. down.” Rankings by average quarter hour ratings. 1-Spring 2008. 2-August 2008 (preliminary ratings). for No.1, from a tie for No. 6 in the Radio executives who support Source: Arbitron spring. the new system don’t want another COMMENTS? Critics of the new system say that delay. [email protected]

September 15, 2008 | Crain’s New York Business | 3 CNYB 09-15-08 A 4 9/12/2008 7:44 PM Page 1

Helped INNOVATE. IN THE MARKETS edited by Erik Ipsen Thank You, Town of Hempstead IDA. “To create a 21st century building, we had to rebuild everything but the structural steel. Without the IDA benets, we could not justify the expenditure.” Con Ed’s payout a powerful draw -Russell Matthews, Executive Vice President Albanese Organization s long as New Yorkers need Unlike others, Albanese Organization and Castagna Realty saw the potential light, Consolidated Edison contribution a completely transformed 1001 Franklin Avenue could make to Inc.’s customers will be buying. Garden City’s thriving commercial corridor. Today, as Long Island’s A 2rst environmentally engineered commercial building, it shines as a beacon of This year has seen both winter and sustainable development. It also is a showcase of what’s possible summer records set for energy when the public and private sectors collectively advance a vision. consumption in New York. In June, The package of tax incentives and bene2ts created by the

Town of Hempstead IDA made this project possible, creating jobs and demand hit 6.7 million megawatt buck ennis fostering economic activity in Nassau’s 2nancial and legal center. hours, as much as the state of Alaska SAFETY’S VIRTUES uses in a year.Even with efforts to get 1001 Franklin Avenue, Garden City people to conserve energy, Con Ed forecasts demand will grow by 1.2% in each of the next five years. What it all adds up to is a powerful reason to regard the shares as safe. Each year, a host of businesses and institutions put the non-pro2t Town of Hempstead IDA to work to help them realize their plans to build, relocate, expand and innovate. Find out how to put the Town of Hempstead IDA to work for your business. Throw in their current 5.5% dividend Call (516) 489-5000 x 4200. Or visit us on the web at www.tohida.org yield, and their appeal to investors becomes positively electrifying. TOWN OF HEMPSTEAD IDA BOARD Jonathan B. Kohan Signs of that appeal surfaced last week. Amid wild swings Kate Murray Theodore P. Sasso, Jr. Treasurer Supervisor Chairman Al D’Agostino on Wall Street, Con Ed’s shares quietly emerged, tortoise- Paul Conte Member like, among the leaders. Its shares finished up 7.5%. Frederick E. Parola Vice Chairman Ari Brown Executive Director/CEO Cheryl Petri Member Secretary Patricia Mezeul Member “Investors prefer regulated loans. The company has since Put us to work for you. names right now, and Con Ed is raised $11 billion in cash and exit- one of those well-known names,” ed the home and student lending says Paul Fremont, an analyst with game. Though its shares have fall- Jefferies & Co. en 68% in the past year, they’ve re- In the wake of scattered sum- bounded 30% in the past month. mer power outages in recent years, Last week, Chief Executive Jeffrey Con Ed began beefing up its infra- Peek pleased investors with the structure. It spent $1.4 billion on stunning news that he is abandon- service improvements in 2007,and ing plans to sell CIT’s railcar leas- Chief Executive Kevin Burke says ing arm simply because he no he has $5 billion worth of projects longer needs the cash. planned for the next three years. Those projects will allow the com- Bay Harbour pany to deliver more power to PepsiCo still packs Management, LLC more paying customers. And after a powerful fizz has leased a full floor of last summer’s 22% electricity rate hike, it looks like that power won’t in good times and bad, up mar- 17,519 sf come cheap. kets and down, from the Bronx to —hilary potkewitz Buenos Aires, people enjoy a cold Pepsi and a salty snack. PepsiCo’s profits have Back from dead, risen in an unbroken CIT offers lesson streak dating back to 1999, and its shares are take heart all ye battered in- up 5% even over the past vestors in Lehman, Merrill, AIG, 12 dismal months.Near- et al. Sur- ly half of the company’s We would like to thank prising revenues and most of its Ben Friedland and Silvio Petriello of CB Richard Ellis, Inc. signs of life growth comes from are emerg- overseas—places like Entire 21st Floor of 17,519 sf available ing at CIT, Serbia, where it recently gobbled the com- up a food company,and Romania, Prestigious suites also available mercial fi- where it’s building a $120 million from 1,286 sf to 12,769 sf nance firm plant. Such moves have helped all but writ- feed revenue growth that has run ten off a year ago as it reeled from at a compound annual rate of writedowns in its portfolio of sub- nearly 10%. Not bad for an 89- prime mortgages and student year-old outfit.

WALL ST’S WALKING WOUNDED GET WALLOPED

In a flight to safety within the financial -48% -37% -22% sector, investors trampled a number of companies hobbled 5-day % price change by big losses. AIG Merrill Lynch MBIA

4 | Crain’s New York Business | September 15, 2008 fp template.qxd 9/4/08 6:07 PM Page 1

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NEW YORK,NEW YORK edited by Valerie Block

Another point for tennis champ t never hurts to be a winner. Fresh from her U.S. Open victory, tennis star Serena Williams is shopping a book. WE ARE According to industry sources, William Morris Agency I Suzanne Gluck honcho was close to reaching a $1 million deal PLEASED TO ANNOUNCE last week for an inspirational memoir by the top-ranked player. Though some houses passed on the proposal, feeling that THAT Ms. Williams was so well known as to be overexposed, a number JEREMY I. MOSS of publishers were vying for the title. A deal with Ms. Williams would be the second in a matter of HAS JOINED OUR COMPANY weeks for a major sports book. Last month, Simon & Schuster imprint Free Press paid Olympic gold medalist Michael Phelps AS $1.6 million for his motivational memoir, Built to Succeed. Despite more than a decade in the spotlight, the 26-year-old VICE PRESIDENT Ms. Williams has never put out a book of her own. In 2005, she and older sister Venus Williams collaborated on a paperback, Serving From the Hip: 10 Rules for Living, Loving, and Winning.A

call to Ms. Gluck was not returned. bloomberg news 212-732-9700 www.silversteinproperties.com accountability.” NoMad wanders Nonprofit invites Do Something, with an annual into no man’s land investment budget of $3.5 million, works with 200,000 young people each hotelier Michael Rawson, former instead of flooding mailboxes year. It expects to reach 2 million right-hand man to André Balazs, with pesky solicitations, one teens by 2011. will soon announce plans for a nonprofit is raising money the new luxury boutique hotel in the way corporations do—by issuing area north of Madison Square an initial public offering. Site set Park.The On Sept. 17, Do on hotels NoMad, for Something, an “north of organization that helps cash-strapped travel hounds Madison,” is teens get into community will have a new Web site at their scheduled to service, will launch its fingertips to help them dig up open in October IPO with the goal of hotel discounts. 2009 on raising $8 million. After two-and-a-half years of Broadway at Investors—who are really offering consumers cheap airline West 28th donors—will need to fork fares, CheapOair will expand Street. “We hope over $100,000 a share. beyond its name’s promise in to create a new For that amount, these response to customer demand. district in New “shareholders” will be The Manhattan-based site will York City,” says invited to participate in unveil Hotels.cheapoair.com the president of quarterly earnings calls today. Unlike rival Hotels.com, GFI Hotel Co., and an annual meeting CheapOair will allow consumers a 30-year with members of Do to view and compare hundreds of industry veteran Something’s board, which hotel results on one page by rolling who helped launch Mr. Balazs’ includes heavy hitters like Wenda their mouse over a hotel name. swanky Mercer Hotel in SoHo. Millard, chief executive of Martha “Information will come up The NoMad will be the first Stewart Living Omnimedia Inc. without having to leave the page,” green renovated hotel in New At that time, they’ll get progress says Sam Jain, CheapOair’s chief York City with LEED reports and be able to offer executive. “The site has been Weiser LLP certification. Built in 1903, the feedback. designed to be neat and clean.” 12-story beaux arts property will “This is what people have The company plans to spend $3 include 160 guest rooms and 11 asked of the not-for-profit sector million on online advertising to suites with interiors designed by for a long time,” says Nancy Lublin, promote the new offering. Mr. Jain French decorator Jacques Garcia,as chief executive of Do Something. expects the venture to lure at least Weiser LLP well as a restaurant and rooftop “You’re going to see this as a new 2 million additional unique visitors garden. It will join The Breslin, bar of transparency and to CheapOair, currently the Tax planning and compliance another GFI property, seventh-largest online which opens a block travel site with 7 Accounting and auditing north this year. BAND STANDS million unique visitors Property and portfolio valuations The hotels aren’t the SUPERSTAR ROCK GROUP the a month. “We Due diligence and litigation support only high-profile will take Financial, economic, and market risk analysis Dave Matthews Band performed additions to the area. a benefit concert last week at market share Acquisition and disposition counseling Tony May’s Italian eatery away from Madison Square Garden, rais- San Domenico is competitors,” he says. moving in next year, and ing $400,000 for Stand Up the House of Versace is for a Cure, a Manhattan- Contributors: Weiser LLP designing interiors for based charity that supports lung Matthew Flamm, the condo renovation of cancer research. The singer said Amanda Fung, | | | | his father died of the disease. LLP the MetLife clock Daniel Massey,

tower building. getty images Miriam Kreinin Souccar

6 | Crain’s New York Business | September 15, 2008 CN012335 9/5/08 4:40 PM Page 1

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- CNYB 09-15-08 A 8 9/12/2008 7:45 PM Page 1

LOOKING FOR A CURE Some rare diseases being researched in New York City. NYC takes on rare diseases DISEASE SYMPTOMS RESEARCHER Long QT syndrome Impaired Dr. Robert Kass, Columbia Continued from Page 1 ease called progeria have high cho- Langone’s Department of Medi- heart function University Medical Center Research into orphan diseases lesterol could help treat people who cine. “Instead of people suffering Fabry disease Dr. Robert Desnick, Mount such as neurofibromatosis has been are susceptible to heart disease or alone with terrible, hopeless unde- Pain, heart and kidney failure Sinai School of Medicine exploding, says one federal health stroke. Dr. Groft says these connec- fined diseases, we are working to- official, and New York City is tions have spurred a sharp rise in rare ward treatments.” Epidermolysis bullosa Extreme skin Dr. Elaine Fuchs, emerging as a center of the work. disease research. Rare diseases run the gamut from simplex blistering Rockefeller University Although scientists hope their in- horrifying to bizarre. One—fi- Still’s disease Fever, rash, arthritis Dr. Petros Efthimiou, vestigations will lead to cures, their Funding available brodysplasia ossificans progressiva— Weill Cornell Medical College research is proving that studying the even though government money turns muscle into bone. Another— Williams Inappropriate gregariousness, Dr. Robert Marion, diseases can also be a gateway to for medical research has been in- trimethylaminuria—is a metabolic syndrome impaired heart function Montefiore Medical Center finding treatments for more com- creasingly difficult to come by, a ailment that causes people to smell mon ailments, such as heart disease sizeable chunk of the National In- like fish. and cancer. stitutes of Health’s budget is devot- New York City is awash in rare- pressure. pain and vulnerable to infection. By As a result, the government is ed to orphan disease research— disease foundations with names Dr. Axelrod’s work has led to a isolating the proteins involved in willing to fund research into many about $4.35 billion, or 15% of the most people have never heard of,like prenatal screening test. Now she is forming skin cells, she and her team orphan diseases, which are defined $29 billion total NIH has ear- the Oxalosis and Hyperoxaluria optimistic about a new gene thera- have not only paved the way for cre- as ones that afflict less than 200,000 marked for research in 2008-2009. Foundation,the Dystrophic Epider- py.“We feel this gene’s function can ating therapies, they have also un- people. If scientists combine public In one measure of the research molysis Bullosa Research Associa- be modified. It’s a giant leap,” she raveled the workings of an even funds with private donations, they trend, scientists have now identified tion and the Melorheostosis Associ- says. deadlier rare disease called general- sometimes find it easier to get re- about 7,000 rare diseases, up from ation.Such foundations fund a lot of There are similar success stories ized myopathy, a muscle disorder search money for rare diseases than 1,000 two decades ago, primarily the research into orphan diseases. throughout the city’s research facil- that kills patients in their late teens. for major ones. because of research into the human Millions of dollars raised by New ities. “We’re happy to have others cap- “Rare disease research has be- genome. That is real progress be- York’s Dysautonomia Foundation italize on our findings,” says Dr. come a way of studying the basic cause recognizing that a group of has supported NYU’s Dr. Felicia Goundbreaking work Fuchs. mechanisms of many diseases,” says symptoms is unique,and likely has a Axelrod’s global fight against famil- rockefeller university’s Dr. Dr. Blaser agrees. “It’s a key les- Dr. Stephen Groft, director of the common cause, is the first step in ial dysautonomia. Babies born with Elaine Fuchs has done ground- son in science. Anytime you solve a National Institutes of Health’s or- studying an ailment. the condition often die because they breaking work on rare skin diseases. problem, however small, you’ve ad- phan disease research department. “It’s a good trend. It means med- are too weak to suck on a nipple. One of them, epidermolysis bullosa vanced human knowledge.” For instance, understanding why icine is improving,” says Dr. Martin Survivors have lifelong problems in- simplex, causes babies’ skin to blister children with a premature aging dis- Blaser, chairman of the NYU cluding dangerously high blood and tear, leaving them in constant COMMENTS? [email protected]

Bear Stearns’ fate was sealed by the global bond market,Lehman has such a loss of confidence. It is also a branched out in recent years,making Losers abound in Lehman’s fall key reason the Federal Reserve a name for itself in equities, deriva- Bank stands ready to lend Lehman tives and other areas. For example, it Continued from Page 1 that amount going to Manhattan spring, to 66 million shares. The what it needs to head off a run on the ranked as the No. 5 player in the lu- Lehman’s shares this year wiping building owners. And it has com- bank’s fifth-largest owner, Welling- bank, though the Fed has yet to crative business of advising U.S. out $15 billion of their net worth. mitted to another $1.4 billion in ton Management, upped its hold- promise to extend the sort of guar- companies on mergers and acquisi- Many of them now face losing their leases over the next four years. ings by 75%, to 25 million shares. antees granted to J.P.Morgan when tions in 2007, up from a distant No. livelihood. Even in the best-case “Any way you measure it,Lehman Even renowned hedge fund manag- it bought Bear. 9 five years earlier, according to scenario—another bank swooping would be a huge tenant to lose,” says er George Soros apparently got Bloomberg. in to rescue Lehman—the job loss- Michael Knott, an analyst at real es- burned.In the spring he doubled his Explosive situation The biggest winner would be the es will be heavy. tate research firm Green Street Ad- firm’s ownership of Lehman, to 9 “this is a powder keg,” says investor or group of investors that “You could see 12,000 people on visors, who estimates that the bank million shares. Christopher Whalen, managing di- manages to grab Lehman’s best the street,” says Gustavo Dolfino, rents more than 1% of midtown’s Customers involved in complex rector at Institutional Risk Analytics. parts, which will be available for a president of recruiting firm White- prime commercial office space. trades with Lehman also stand to But Lehman’s predicament also song. Sanford C. Bernstein & Co. Rock Group. take major losses if the firm can’t represents a singular opportunity analyst Brad Hintz, a former chief Landlords would also sorely miss Wagers gone awry honor its financial commitments. for some. Last year, the firm posted financial officer at Lehman, says Lehman. In addition to owning its the news could hardly be worse for They have entered into $44 billion revenues of $59 billion, all of which that apart from its toxic mortgage 1 million-square-foot headquarters Lehman’s 411,000 shareholders,in- worth of privately negotiated deriv- would be up for grabs by its com- portfolio, the firm retains a strong on Seventh Avenue, the firm rents cluding several that, sure that a re- ative contracts with Lehman and petitors. The lion’s share of that investment banking franchise. 2.4 million square feet at pricey New bound was imminent, redoubled could suffer huge hits if enough of business would probably go to the “This firm would be attractive to York addresses, including 399 Park their bets in the spring. Lehman’s them get antsy about the ability of big three surviving U.S. investment a lot of players if you could separate Ave. and 1271 Sixth Ave. Lehman No. 1 investor, Manhattan-based Lehman, which has just $28 billion banks: Goldman Sachs, Merrill out the mortgages,” Mr. Hintz says. paid $250 million dollars in rent AllianceBernstein Holding, in- of capital, to make good on its Lynch and Morgan Stanley. worldwide last year—a good slug of creased its stake by 43% in the agreements. Long known as a powerhouse in COMMENTS? [email protected]

with anything quite the size of One rumored solution is a buy- WaMu, whose assets of $309 billion out by J.P.Morgan Chase. Research NY banker to WaMu’s rescue are more than 17 times those that he firm SNL Financial says such a deal was responsible for at Indepen- could probably be done without di- Continued from Page 1 guts,” says Charlie Hamm, who stock had been trading at—stunned dence. And investors don’t seem to vesting any branches in the New for the difficult job, but analysts say handpicked the 5-foot, 8-inch Mr. observers and helped Mr. Fishman think he—or anyone, for that mat- York area because the combined in- there’s little anyone can do to spark Fishman to be his successor at Inde- gain a reputation for making share- ter—can lift WaMu out of its stitutions would have less than 35% a turnaround for the thrift. pendence. “He’s a real terrier.” holder value his No. 1 priority. mounting troubles. The savings and of the metropolitan region’s total Mr. Fishman joined Chemical On top of the sale price, Mr. loan said in July that it could lose $19 deposits. But consumer advocacy Energetic leader Bank in 1969 and rose to be its chief Fishman convinced Sovereign to billion over the next two-and-a-half groups contend a merger of this “it’s a very tough situation,” financial officer by his mid- throw in $20 million for the years from rotten mortgages. Losses size—the two institutions com- says Richard Bove, a financial insti- 30s. In 1992, he founded Independence Community could be even worse if the economy bined would have 1,050 branches in tutions analyst at Ladenburg Thal- Columbia Financial Part- $19B Foundation, which ad- continues to sour. Shares of WaMu the area—would raise concerns. man. “He’s stepping into a swamp, ners, which bought strug- WaMu’s possible vances community devel- fell 50% over a recent five-day span. WaMu has 144 branches in the city. loss from bad and hopefully he won’t hit the gling financial services mortgages opment. Although Mr. The S&L took the unusual step Mr. Hamm says Mr. Fishman’s quicksand.” companies and resurrected over the next Fishman will be based in late last week of releasing midquar- first month on the job will be key. Mr. Fishman replaces Kerry them. He took the reins of 2.5 years. WaMu’s Seattle headquar- ter financial results in an effort to “He’ll talk to regulators, he’ll talk to Killinger following a short stay as Independence in 2001. ters, he plans to continue to calm investors’fears.WaMu report- investors, he’ll talk to big guns who chairman of Meridian Capital Under Mr. Fishman’s steward- chair the foundation and the Brook- ed that it had $50 billion in liquidi- still have money in it, and he’ll talk Group, a commercial mortgage bro- ship, Independence nearly tripled in lyn Academy of Music. ty from reliable funding sources and to employees and figure out their ker. Over 30 years in the financial size, to $18 billion in assets, most no- that the growth rate for loans it roles,” he says.“Then he’ll figure out services industry,the Brooklyn native tably through the acquisition of Stat- Formidable task doesn’t think are collectible will slow what the assets are really worth and built a reputation as an energetic en Island Bancorp in 2003.Two years mr.fishman has experience getting to less than 20% in the third quarter, which are the most viable and how to leader with sound judgment,one who later, he engineered the sale of Inde- companies back on track, and he from 60% in the previous quarter. manage all the cockamamie mort- never backed down from a good fight. pendence to Sovereign Bancorp for even helped transform the Brooklyn WaMu also reported it was setting gages they never should have made.” “Being short as a basketball play- $3.6 billion. The $42 per share Navy Yard into a thriving commer- aside $1.4 billion less for loan losses er, he had to have a lot of spirit and price—a 31% premium over what the cial center. But he has never dealt than it had in the previous quarter. COMMENTS? [email protected]

8 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 9 9/12/2008 3:05 PM Page 1

City’s lawyers under pressure to cut settlement payouts

Continued from Page 3 The agency might insist that it’s for the Law Department. As if on Despite the daunting caseload, conducting business as usual,but le- LOOMING LAWSUITS cue, it won several big settlements the Law Department says it hasn’t gal professionals who deal with it this year. In the spring, a U.S. Biggest claims against NYC this year. changed anything about the way its regularly have noticed a recent Supreme Court victory in a proper- 690 lawyers operate. change in tactics and a keen reluc- Filed Plaintiff Amount sought ty tax evasion case involving several “Although we face cases involv- tance to settle in some instances. foreign missions and consulates gar- ing tragic events, we work diligent- “The city seems to be fighting August Families of victims of the March nered New York $58 million.And in ly to settle meritorious claims certain cases a lot harder recently— crane collapse $497M July, it won nearly $8 million in a quickly and fairly,” Mr. Cardozo particularly civil rights law cases,” August Families of victims of the May crane settlement from Bristol-Myers says. “When a claim isn’t meritori- says lawyer Ronald Kuby,who is of- collapse $138M Squibb for fraudulent Medicaid ous, we’ll fight the case aggressively ten an adversary in police action billing. to protect the city’s coffers.” suits. May Con Ed over 2007 steam-pipe Nevertheless, New York’s recent explosion $45M Some gains to city coffers City fighting harder setbacks in high-profile cases illus- April Family and victims of 2006 police in all, New York has collected $74 trate the demands on its lawyers. one such case was finally settled $50M million in the past year, a hefty in- After several years of decline, total last month, when the city agreed to killing of Sean Bell crease from $24 million the year be- payouts in tort cases—those involv- pay $2 million to 52 people arrested fore. It has also been awarded $130 ing personal injury or property in 2003 protesting the Iraq War.The million that it will receive over sev- damage—shot up 12% last year, to city dropped all criminal charges court battle with hundreds of Civil Liberties Union, which is rep- eral years from asbestos litigation. $535 million,the first increase since and admitting no wrongdoing. demonstrators arrested during the resenting the protestors. “And yet “Every year, unpredictable law- 2004. “In previous years, when police 2004 Republican National Conven- the city is still fighting.” suits come up that are very serious, Though the number of cases has would falsely arrest people, the city tion.Out of about 1,800 arrests,557 According to the comptroller’s involving hundreds of millions of plummeted—to 28,000 last year would quickly settle those cases for claims are still pending. Charges office, New York has so far spent dollars,” Mr. Hess says. “The from more than 33,000 in 2005, be- a reasonable sum,recognizing that it have been dismissed or dropped in about $8 million on the RNC cases, lawyers that litigate them are under cause of an early-settlement pro- did wrong,”Mr.Kuby says.Now the 90% of the cases that have been de- though just $1.6 million of that was tremendous pressure. No one wants gram initiated two years ago and a city seems to be fighting tooth and cided. paid out in settlements. Such per- to be the one to bankrupt the city.” change in sidewalk-injury liability nail, even when it seems likely to “At every step of the way,we have sistence illustrates the city’s resolve laws—the rise in payouts was a blow lose. won and the city has lost,” says a to reduce payouts, legal experts say. COMMENTS? to the Law Department. New York is still embroiled in a spokeswoman with the New York Offsetting payouts is a priority [email protected]

an antiquated water-based refriger- trucks to run on used cooking oil. Caterers employ new methods ation and air-conditioning system And like Mr. Kirsch, Mr. that constantly ran full blast. A new Iavarone is getting tougher on sup- $200,000 computerized, air-based pliers. Rather than giving business Continued from Page 2 For example,the firm is selling more ates four prepared-food stores and system adjusts and reduces energy to preferred vendors, IBF is order- other steps, including swapping out leg of lamb instead of the pricier two restaurants in Queens and Long use. This summer, Mr. Iavarone ing line items from spreadsheets expensive food items for cheaper rack of lamb. Island, is now conserving and recy- says, his energy bills were $10,000 that track prices among vendors. ones, having vendors compete more “We don’t gouge, but our cus- cling edible oil—prices for which lower than last years’. “There are a lot of hungry ven- for their business and implementing tomers understand it,” he says. have risen 35% to 50% in the past IBF is saving on fuel costs by dors,” Mr. Iavarone says. “Now I pit new technologies to help them Mr. Kirsch’s 1,000-employee year. IBF invested in a machine that planning ahead and ordering full them all against each other.” manage their costs better. company takes advantage of filters cooking oil for re-use. truckloads of supplies. It’s exploring And they’re telling their cus- economies of scale, pressuring sup- The company has also replaced the idea of converting delivery COMMENTS? [email protected] tomers to expect to pay more due to pliers for lower prices. And preferred market forces beyond their control. vendors aren’t quite so preferred now. Mr. Neuman says that a number of He has stopped buying mushrooms his clients’ annual contracts will re- from a big supplier and signed a year- new this fall with increases of 5% to ly contract with a small, local and 12%. For now, at least, caterers say cheaper mushroom farmer instead. most customers seem to accept the higher prices, but how long the Tracking futures exchanges goodwill lasts is anybody’s guess. the firm’scorporate director of pur- “Nobody likes price increases, chasing tracks the futures exchanges but people know what’s happening. to learn where the company can find Everybody’s budgets are shrinking,” bargains. Unexpectedly,for instance, says Trey Birdsong of Coleman beef suppliers are expected to be Center, a meeting and training overstocked this fall because cash- space in Manhat- strapped consumers Market tan, one of Mr. didn’t do much bar- Neuman’s clients. Customers becuing over the This summer, say they summer. smart. prices for every- But as eager as thing from dairy caterers are to find and eggs to meat understand pricing alternatives, and spices are at the realities of the their highest levels the problem marketplace can get since 1981, accord- in the way of in- ing to the U.S. De- novation. When partment of Labor’s Mr. Neuman ap- monthly Producer proached his clients Price Index. The PPI in August with a plan to charge them based on shows that overall prices are 9.6% a fluctuating price index, they shot it higher than they were a year ago. down immediately, along with the Consumer foods rose 9.1% in August idea of signing quarterly rather than compared to a year ago. yearly contracts. “That went over like a lead bal- Looking for deals loon,” he says.“People want the cer- in response to increased food tainty of knowing the price for the prices,Jim Kirsch,chief executive of entire year.” Abigail Kirsch Catering Relation- Instead,Mr.Neuman will use his ships, one of the city’s largest cater- proposal as an internal tool to help ing firms,is using the industry prac- his $7.5 million,60-employee cater- tice of “menu engineering” now ing business track food costs for its more than ever to examine the cost 200 corporate clients. of every food item that’s served at a Joe Iavarone, president of private party or corporate banquet. Iavarone Bros. Foods, which oper-

September 15, 2008 | Crain’s New York Business | 9 CNYB 09-15-08 A 10 9/11/2008 8:10 PM Page 1

CHANGING OF THE GUARD: New Met director Thomas Campbell (left) with retiring director Philippe de Montebello. bloomberg news Newcomers set 180,000 SF on Six Contiguous Full Floors to change NY Floor-to-Ceiling Windows on 2nd Floor | Dramatic Park Avenue Views Steps from Grand Central North-End Access | Will Lease Individual Floors cultural scene For information on this rare Park Avenue opportunity, please contact: announced his retirement at the end David L. Hoffman Jr. | 212.318.9767 Wendy Miller | 212.318.9764 Metropolitan [email protected] [email protected] of the 2006-07 season. Similarly, Museum’s director Vin Cipolla, chief executive of the National Park Foundation, will suc- one of several ceed Kent Barwick as president of CPA-1007 Crains 6 x 6.indd 1 9/8/08 10:41:31 AM incoming execs the Municipal Art Society of New York in January. Another factor is the evolving BY MIRIAM KREININ SOUCCAR nature of the jobs. “The role of top directors and curators has the most important job in the arts changed,” Ms. Thomas says. “So world was filled last week when the much more of their position is re- Metropolitan Museum of Art quiring them to be fundraisers and named its tapestries curator, bring in resources.” Thomas Campbell, its new director and chief executive. Scholarly direction But the new arrival at the Met is indeed,Jeffrey Weiss,the recent di- just one of nearly a dozen incoming rector of the Dia Art Foundation, executives in high-ranking posi- says he left to resume scholarly and tions at New York curatorial work. City cultural or- His replacement, ganizations. Mr. Baby boomers Philippe Vergne, a Campbell, who in former executive at January will re- who have held the Walker Art Deal place Philippe de Center in Min- Montebello—re- these top neapolis,takes over tiring after 31 the job on Sept.15. savvy. years in the post— posts are So many new- will have new comers are bound counterparts at now retiring to change the New many of New York cultural land- York’s leading cul- scape. tural institutions, The Solomon including the New R. Guggenheim York City Opera Museum is report- and the Solomon R. Guggenheim edly announcing soon that it has Museum. chosen Richard Armstrong, former “There is more change at the top director of the Carnegie Museum in of arts and cultural institutions than Pittsburgh, as its new chief. The ever before,” says Geri Thomas, Museum of Modern Art recently president of Artstaffing.com, a re- hired Kathy Halbreich of the Walk- cruitment and consulting firm for er Art Center for the newly created the arts. position of associate director in charge of contemporary art. The Next generation Public Theater’s new head, Andrew part of the reason, according to Hamingson, former managing di- Ms. Thomas and other arts experts, rector of the Atlantic Theater Com- is simply demographics. Baby pany, begins Oct. 1. He replaces boomers who have held these top Mara Manus, who moved uptown posts are now retiring. Gerard to run the Film Society of Lincoln Mortier,the incoming general man- Center. ager and artistic director at City Opera, was hired after Paul Kellogg COMMENTS? [email protected]

10 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 11 9/11/2008 6:32 PM Page 1

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Fun place to shop Sales were up 511% in the second “i’ve always believed in retailing quarter of this year, versus the first. as theater.If you go look at the store, Such growth has won attention you’ll see that it’s fun to shop in,” from Wall Street investors, who are says Mr. Traub, now president of urging him to considering further Marvin Traub Associates. “It’s expansion. loaded with goods, and many of “He’s got enough product and them are unique and unusual. It can recreate what he has on Eighth Every one of our 48 brokers makes for an enjoyable shopping ex- Street. I think he’s got something supports your sale. perience.” that sparks the imagination,” says The green in Mr. Geist’s busi- Laurence Leeds,chairman of Buck- ness is helping him ring up lots of ingham Capital Management, an the same. Annual revenues for his equity management firm. three stores and Web site in 2007 Mr. Geist is taking it slow. “It were $6.5 million. Mr. Geist is pre- takes longer than a few seasons to dicting that revenues will rise to $20 build the next Levis,” he says. million in 2009. The key is offering www.easternconsolidated.com | 212.499.7700 plenty of variety, he says, as he out- COMMENTS? [email protected]

September 15, 2008 | Crain’s New York Business | 11 CNYB 09-15-08 A 12 9/11/2008 8:39 PM Page 1

VIEWPOINT Three NY political stories hese are the tales of three New York He has also become a poster child for the arrogance of editor in chief Rance Crain Jill R. Kaplan City politicians: Gov. David Paterson, power. Mr. Rangel has been occupying not one but four publisher, vp EDITORIAL Rep. Charles Rangel and Queens rent-regulated apartments—one used for a campaign office editor Greg David Assemblyman Anthony Seminerio. Last in violation of the law.The lawmaker has also failed to managing editor Robert Hordt deputy managing editors Valerie Block, week, Mr. Paterson received an extended properly pay taxes on a vacation home, despite his position as Erik Ipsen standing ovation as he was introduced at the man who writes the contributing editor Elizabeth MacBride the Crain’s breakfast forum. tax code. He seems to columnist Alair Townsend Many other government officials have been cheered at the regard these as minor senior reporters Theresa Agovino, Aaron Elstein, Erik Engquist, Lisa Fickenscher, event, but in more than 20 years, no one has ever received a matters. Matthew Flamm, Miriam Kreinin Souccar T Barbara Benson, Amanda Fung, standing ovation at the beginning of the session. It seems Mr. Seminerio’s reporters Daniel Massey, Adrianne Pasquarelli, remarkable that such a longtime Democratic state legislator alleged transgressions Hilary Potkewitz, Gale Scott, Matthew Sollars would have won such affection from a conservative, are something worse restaurant critic Bob Lape Paterson Rangel Seminerio art director Steven Krupinski Republican-leaning crowd. And the applause would have and represent all that is deputy art directors Carolyn McClain, been louder and longer if the event had been held upstate, wrong with Albany. Daniel Mednick staff photographer Buck Ennis according to one businessperson who spends considerable The Democratic According to charges copy desk chief Wendy Zuckerman copy editors Michele Arboit, time in both areas. governor is filed last week, the Thaddeus Rutkowski Style explains part of the goodwill. Mr. Paterson’s assemblyman got tired research editor Denise Southwood surprisingly www.crainsnewyork.com approachability and willingness to listen stand in stark of helping local web producers Kira Bindrim, contrast to his predecessor, former Gov. Eliot Spitzer. popular upstate hospital officials get a Elisabeth Butler Cordova More important is Mr. Paterson’s determination to pare bigger part of the EDITORIAL AND ADVERTISING OFFICES spending to what New York can afford. He won’t rule out tax health care pie without 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 increases to close next year’s big deficit. But he has been compensation, so he advertising: 212.210.0259 Cable craincom nyk resolute in his view that the runaway budget is what has began demanding Fax 212.210.0499 caused the state’s fiscal woes, and he insists on addressing consulting fees. One hospital allegedly paid him almost Entire contents ©copyright 2008 Crain Communications Inc. All rights reserved. that problem first. His committed support for a property tax $400,000. ®CityBusiness is a registered trademark of MCP cap has won him legions of fans upstate, where the tax has This scandal is a direct result of a health care system Inc., used under license agreement. TO SUBSCRIBE: been more of a burden than it has been in the city or wealthy focused not on how to deliver the best, affordable care for Call 888.909.9111; fax 313.446.6777. suburbs. New Yorkers but on propping up hospitals because of the $3.00 a copy, $59.79 one year, $109.79 two years. www.crainsnewyork.com As for Mr. Rangel, he is doubtless one of the most jobs they create with taxpayer dollars. It is possible because ADVERTISING AND MARKETING knowledgeable congressmen in Washington and has long of the Legislature’s lax disclosure rules. advertising director Jeff Adler tended to New York’s interests from his perch on the Ways Here is the question that matters. Will New Yorkers rally senior account managers Cornelius P. Gore, William E. Squitieri and Means Committee. For a liberal Democrat, he has to the best politicians and turn their backs on the worst? For commercial real estate sales manager historically had reasonable positions on key tax and trade too long, they have not done that. Cory Marks account executives issues, though he has become more protectionist in recent Irene Irvill, Courtney McCombs, Anthony Mowad years. COMMENTS? [email protected] western account manager Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified print & online John Gallagher newsletter product manager Catherine Evans Gittens LETTERS TO THE EDITOR sales coordinator, print & online Lulé Haznedari sales coordinator Anita Perrino credit Todd J. Masura 313.446.6097 marketing director Amy Crossman Readers want a return to issues marketing manager Jill H. Bottomley marketing coordinator Jenny Mashberg circulation manager Andrea Richardson IF MODERATE REPUBLICANS and SARAH PALIN IS the antithesis of president.This person flip-flops assistant circulation manager Rosalie Ford female Democrats swept up in the Barack Obama. She derides his and avoids direct stands so that Palin frenzy take a deep breath and idealism and exhorts people to you can’t get a grip on what he general manager, interactive Marc Minardo make a two-column sheet, with obey their worst impulses. really does stand for. Oh, wait, I web developer, interactive McCain-Palin positions on key loren arethas forgot, he stands for “change.” Chris O’Donnell issues on one side and Obama- Changing what? Biden positions on the other, it IS SARAH PALIN an excuse not to dennis dozer NEW YORK PRODUCTION production and pre-press director should be very clear that the vote for Obama or a reason to vote Michael Corsi Republican Party and its for McCain? Palin’s canned speech REPUBLICANS DO NOT SPEAK about advertising production manager candidates have been co-opted by was not a breath of fresh air. It’s the issues of reducing the cost of Marilyn DeMilta the right wing. worse than Beijing air prior to the education, providing health care PUBLISHED BY CRAIN COMMUNICATIONS INC.

It is in the best interest of the bloomberg news Olympics. for everyone, alternative energy chairman Keith E. Crain saner heads in this country to stop GOV. SARAH PALIN is seen by some as Sen. ron thomas plans, and other policies that will president Rance Crain the mudslinging and to focus on John McCain’s nod to the far right. put the United States back on secretary Merrilee Crain the true differences in philosophy BARACK OBAMA HAD only 143 days’ track while benefiting the treasurer Mary Kay Crain of governance. If the majority goes would be very surprised. experience in the Senate before he majority of people. executive vp, operations William Morrow senior vp, group publisher Gloria Scoby on to elect the Republican ticket, I lois schwartz hit the campaign trail to be elected tommy lewinsky group vp, technology, circulation, manufacturing Robert C. Adams vice president/production & manufacturing David Kamis WHAT’S COMING UP IN CRAIN’S? chief information officer Paul Dalpiaz corporate circulation director Executive New Real Small Health Top Patrick Sheposh travel Influentials estate business care accounting founder G.D. Crain Jr. (1885-1973) report report report report report firms chairman Mrs. G.D. Crain Jr. (1911-1996) Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27

12 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 13 9/11/2008 8:40 PM Page 1

Companies large and In response to my e-mail request for comment, an MSNBC spokes- small rely on Amper, and man said, “We disagree with your thesis.” you can too. I figured as much. But Roy Clark, a professor of journalism at the Poynter Institute, agrees with me. “I think it would be a better de- scription,” Mr. Clark says. “Mem- bers of the viewing public need to … understand the difference between news and opinion.” When cable news came of age in the early 1990s, CNN provided more traditional news program- ming. Its coverage of the first Gulf war was groundbreaking,and inves- tigative journalism was a core part of its mission. It also brought us saturation, like endless footage of the white Ford Bronco crawling along a Los Ange- les freeway. Fox News and its popu- lar conservative hosts took a differ-

john h.john howard ent tack some 10 years later, and proved that opinionated nattering reaped better and more consistent ratings at lower cost. “Talk is much cheaper to pro- Cable networks’ duce than news—much, much cheaper,” Mr. Clark says. The other networks, after taking towers of babble a ratings beating for years, have fol- “Seeing Beyond the Numbers...” lowed suit. Most recently, Rachel www.amper-pc.com Maddow, a host on left-leaning Air adio makes a clear distinction between news America Radio, landed a prime- and talk.WINS gives you the world in 22 minutes; time slot on MSNBC. CNN tries to stay above the fray WABC’s hosts pontificate.Maybe it’s time the ca- by keeping newscasters like Ander- ble news networks made their own distinctions. son Cooper and Wolf Blitzer in an- CNN, MSNBC and Fox News Channel are chor spots. But for election cover- considered 24-hour news outlets, but for years they have been age, the network stocks its studio R with partisan campaign operatives feeding the public a combination of news and talk—with talk who argue among themselves. And of course, Lou Dobbs can hardly be increasingly taking pre- news organizations. called dispassionate. cedence as the blather- If cable news chan- The public pays the price. The ers buoy ratings. nels would just admit line between journalism and enter- Last week,using par- that they’re more like tainment blurs further.Serious news tisan pundits in a news talk radio stations than outlets lose the ability to compete ef- setting had ugly conse- they are like news out- fectively.The electorate is distracted quences. lets, they could free by partisan rancor. And what passes MSNBC had to themselves once and for news sinks lower. yank two of its most for all from objectivity When this election is over, the popular hosts—liberals and bloviate without networks will go back to another Keith Olbermann and criticism. They might form of news degradation: obsess- Chris Matthews—from VALERIE also less frequently be ing over the latest sex scandal, miss- its election coverage as BLOCK the butt of jokes by ing baby or shark attack. Truly, this fallout from their on-air Comedy Central’s faux is not news,it’s noise.So let’s just call bickering and obvious anchors. it that. bias spilled over to NBC,embarrass- More important, viewers would ing one of the country’s premier know the deal. COMMENTS? [email protected]

CRAIN’S ONLINE POLL Do you expect a neck-and-neck presidential race?

378 VOTES Yes. John McCain’s Date of poll: Sept. 10 choice of Sarah Palin No. Ms. Palin’s was a stroke of genius glow will fade in a and has gained him few weeks, and more support among 31% 33%. Barack Obama will voters . regain his edge

Yes. The Republicans No. One of Mr. are running a much Obama’s strengths better campaign and 13% is his oratory. He’ll getting their message .23% . pull ahead after the out while the first presidential

bloomberg news Democrats fumble debate

For readers’ comments, see Letters to the Editor on Page 12.

September 15, 2008 | Crain’s New York Business | 13 CNYB 09-15-08 A 14 9/12/2008 2:27 PM Page 1

who run from bad economic news, he runs straight into the storm.” Past governors have patched PRIMARY WINNERS AND LOSERS THE INSIDER over budget deficits by borrowing WHEN THE DUST CLEARED from last week’s primary election, three incumbents money, selling state assets and had missed their return train to Albany. But behind the scenes, others employing clever bookkeeping— enhanced their profiles or were dealt a blow. by Erik Engquist and Matthew Sollars options not available to most business owners. Mr. Paterson has Winners … responded as any struggling merchant would: by cutting Sen. Chuck Schumer. He took the unusual step of endorsing an spending. “A fiscal crisis is a terrible insurgent in a Democratic primary, helping his former aide Daniel Squadron Governor rouses thing to waste,” Mr. Adams says. raise money and rounding up endorsements from the unlikely pair of Mayor business owners “He’s leveraging it to achieve Michael Bloomberg and Rep. Anthony Weiner. Mr. Squadron defeated 30- fundamental reform for New York year incumbent state Sen. Martin Connor, D-Brooklyn. nly last spring, David state.” The Working Families Party and the Hotel Trades Council. The party lent The approach has resonated Paterson was unknown to Mr. Squadron five staffers and knocked on 40,000 doors, while the union with the business community made 8,000 phone calls and knocked on 1,500 doors. Both earned goodwill the business community, because fiscal discipline, rather from Assembly Speaker Sheldon Silver (below) by lending volunteers to his O than tax increases or financial toiling in obscurity as a lieutenant campaign. governor following two similarly chicanery, has long been its plea. Senate Minority Leader Malcolm Smith. Conventional wisdom pegged Usually that call is overwhelmed by Mr. Smith a loser because two of his conference members lost. But one, Mr. powerless decades in the state special interests, but when they Connor, will be replaced by a more energetic worker and fundraiser, and the went after the budget-cutting Senate. Last week, less than other, Efrain González, is facing federal corruption charges. State Sen. Kevin six months into his governor this summer, the public buck ennis stood with Mr. Paterson. “He’s Parker, a Smith ally, survived an assault by City Councilmen Simcha Felder governorship, his and Kendall Stewart in Brooklyn. VIDEO EXCERPTS of building a broad consensus across introduction at a Crain’s New York state that we’ve got to Gov. David Paterson on … and Losers Breakfast Forum brought crainsnewyork.com reduce spending,” Mr. Adams 1,100 businesspeople to explains. “That’s actually the Queens Councilman John Liu. He backed Assemblywoman Ellen Young, reform Albany needs.” their feet. G Cut the budget, then consider tax hikes his former aide, who was crushed by Mr. Liu’s enemy, Grace Meng. Pundits will surmise that if Mr. Liu cannot usher an incumbent to victory in Flushing, The reaction— G The outlook for health care and education Ads take aim his chances to win citywide office are slim. unprecedented at Crain’s Bronx Democratic Chairman Jose Rivera. A coalition of G Choosing among big projects forums—stems from the at Willets Point elected officials and insurgent candidates made a show G Republicans and race governor’s refreshing Willets Point business of strength against the Rivera machine, laying the G The term limits question a group of response to the economic owners is running full-page color groundwork for a future rebellion. ads in four Queens newspapers Brooklyn Democratic Chairman Vito Lopez. downturn, according to Deferring to local district leaders, Mr. Lopez dutifully Kenneth Adams lauding officials who oppose the , president of the Business Council of New city’s plan to redevelop the area— backed Mr. Connor, but could not rescue their York State. and lambasting those who favor it. sinking ship. “He got that standing ovation because he’s taken on the “Fighting for Queens,” says an Mayor Michael Bloomberg. The mayor’s fans argue that two of his three endorsed state state’s fiscal crisis with brutal honesty,” says Mr. Adams. ad hailing eight Queens City Council members opposing the candidates won, earning him chits to cash in “That audience appreciates the common sense, the fiscal process. An ad picturing six when the Legislature votes next year on pragmatism, and the fact that unlike other elected officials Queens officials who support the mayoral control of schools. But the one he campaigned with, Mr. Felder, lost decisively in an African-American district. getty images

plan warns, “Don’t sell out amended the term limits law to Queens.” account for partial terms in 2002. The project needs council The Bronx Democrat says a approval. 2003 state Appellate Division decision upholding Local Law 27 sets a precedent for the council to Marshall has amend term limits passed by energy for job referendum. Local Law 27 allowed council members elected to partial the oldest of the city’s five terms to then serve two 4-year borough presidents says she hopes terms. term limits are extended so she can But extending limits complete the projects she has legislatively will undoubtedly result underway in Queens. Responding in a legal challenge, says Jerry to Greg David’s column in the Sept. 8 Goldfeder, an attorney at Stroock & Crain’s suggesting she might retire, Stroock & Lavan. Helen Marshall says she has as much “There is still an opportunity for WWW.11WEST19STREET.COM energy as ever for the job. the public to vote on this, if the The 79-year-old also notes that council or the mayor creates a CHELSEA • FLATIRON • UNION SQUARE her aunts lived until they were 105 charter commission that could put and 97. it on a special referendum ballot in early 2009,” he says. • 26,000 sf FOR LEASING INFORMATION PLEASE CONTACT: Council tackles • Full floor identity term limits Union seeks Michael Kaufman supermarkets • Newly renovated lobby 212-471-4320 as promised, City Councilman Oliver Koppell has asked the council’s united food and Commercial [email protected] legal department to draft a bill Workers Local 1500, which • NBI for qualified Tenants allowing the mayor, council represents supermarket workers, is Grant Greenspan members, borough presidents, the not taking for granted the • Close Proximity to 212-471-4340 public advocate and the Bloomberg administration’s Transportation [email protected] comptroller to serve three four-year professed support for increasing the terms.The staff now has 60 days to number of supermarkets. pen the legislation. The union is promoting a town The bill would actually allow hall meeting organized by We Act THE KAUFMAN ORGANIZATION officials to serve as many as 15 years for Environmental Justice at 6 p.m. WWW.KAUFMANORGANIZATION.COM if they win a special election and on Sept. 24 at the TAG School, 240 serve a partial term.The council E. 109th St.

14 | Crain’s New York Business | September 15, 2008 CN012345 9/9/08 3:06 PM Page 1

The plan that’s making news.

Getting the fundamentals of health care right doesn’t sound like much of a story. But it could improve the life of every New Yorker. Giving you the great doctors you want, at premiums you can a ord. And that, we believe, is good news for everyone.

The plan that works. CNYB 09-15-08 A 16 9/12/2008 2:25 PM Page 1

WEEK IN REVIEW For daily news updates, go to www.crainsnewyork.com

determine the final payout. ECONOMIC SPOTLIGHT 311 goes to the videotape the city launched new technology that allows callers on to its 911 and 311 hotlines to send photos and videos of crimes or complaints. New York will be the first city to accept such media. Cab drivers sue over green rules trade group Metropolitan Taxicab Board of Trade sued the city over new rules requiring all

bloomberg news yellow cabs to go green, claiming safety will be jeopardized because Bloomberg takes aim at LMDC cars operating on a mix of gas and electricity weren’t designed for DURING THE WEEK of the seventh anniversary of the terrorist commercial use. An Oct. 1 attacks of Sept. 11, 2001, MAYOR MICHAEL BLOOMBERG deadline requires all new cabs to called for abolishing the Ground Zero planning agency—the get 25 miles per gallon. LOWER MANHATTAN DEVELOPMENT CORP.—and giving the city Saving the Times a bigger role in the rebuilding of the World Trade Center site. The mayor also asked the officials to pledge to construct the mexican telecom billionaire Economy Watch Carlos Slim Helú and his family Sept. 11 memorial by 2011. His call met with a lukewarm acquired a 6.4% stake in The New With the first of the Wall Street layoffs showing up, the city’s jobless rate response. York Times Co. Meanwhile, the rose in June, and the total number of jobs declined. media company will try to cut MAY ’08 JUNE ’08 COMPARISON costs by re-merging its Metro and NY area inflation change +1.0% +1.0% +4.5%1 Wenner suggests Co., agreed to pay $28 Sports sections in 2 million to mollify consumers October and closing a NYC unemployment rate 5.2% 5.4% 5.5% J.Lo’s shades who were harmed by the distribution center in NYC employment change -300 -1,000 +12,7003 company’s illegal home- January, axing 500 1-NY area inflation change for the latest 12-month period. 2-U.S. unemployment rate for the publisher Jann Wenner plans to mortgage loan practices. It jobs. latest month. 3-NYC employment change year to date. launch a shopping-based spinoff must also create and maintain of his celebrity-obsessed magazine a consumer-loan data-integrity US Weekly.The fashion quarterly program that will be audited by Hearst will be geared to readers who want an independent group every preps pub NYC Hotel Stats Broadway Stats to dress like celebs, similar to two years. Occupancy and room rate declined Attendance and gross dropped dra- People magazine’s StyleWatch. US to combat in July, PKF Consulting data show. matically during the week that Weekly saw sharply declining sales lagging sales, Year-to-date averages—at 85.5% started with Labor Day and ended in the first half of the year. NBC cozies up Hearst Magazines and $296.80, respectively—topped 9/7, The Broadway League says. to Google, Apple partnered with the Food Network those for the same period in ’07, Season-to-date figures topped last Arena adds value to create Food Network Magazine, which were 84.4% and $275.36. year’s results by less than 1% each. nbc universal ended a yearlong which will feature such celebrity thanks to their new stadium, standoff with Apple Inc. and cooks as Southern kitchen queen the New York Jets and Giants had agreed to sell its shows on iTunes. Paula Deen, Ina Garten and the biggest increase in value in The network had pulled its others. The first issue, slated for Forbes magazine’s annual ranking programs after complaining about October, will have an initial of NFL franchises, each jumping pricing. … NBC also struck a deal distribution of 300,000 copies. 21%. Both had a value of nearly with Google Inc. that allows the $1.2 billion, and the Giants moved Internet company to sell ads on its to fourth place, from eighth, while channels and capture viewer data. 10 letters across, the Jets ranked fifth. fruit-named gadget Don’t tell Eloise research in motion ltd. Killing curse russian hedge-fund manager signed two deals for its for Potter guide Andrei Vavilov filed a $31 million smartphone BlackBerry in lawsuit against El-Ad, developer an effort to make the device more u.s. district of the recently renovated appealing to mainstream Judge Robert Plaza. He paid $53.5 million consumers. On Oct. 2, it will offer Capital IQ’s Weekly Deals Report Patterson ruled in for two penthouse suites and a mobile version of the New York favor of Harry claims they were shabby Times’ crossword puzzle and TRANSACTION SIZE Potter author J.K. compared to the elegance he launch a global MySpace COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE Rowling in her was promised. application. Concord International Investments $24.0 Pioneers Holding (20%) SB M&A copyright- Manhattan infringement Yanks’ Bank Primatech Corp. $16.0 Fidelity Ventures GCI lawsuit against a Jury says city owes Manhattan fan and Web ferry victim $23M bank of america reportedly Correlix Inc. $ 8.0 Sequoia Capital, Genesis Partners Ltd., GCI site operator neared a deal to sponsor the new Manhattan Blumberg Capital, Xenia Venture Capital who was set to a federal jury told New York Yankee Stadium. Chase Bank has Neostem Inc. $1.3 Rim Asia Capital GCI publish a Potter lexicon.The City to pay James McMillan Jr. also been negotiating for the Manhattan decision awarded Ms. Rowling $23 million for the paralyzing sponsorship, which sources say Body Health Resources Corp. n/a The HealthCentral Network Inc. SB M&A Manhattan nominal damages. spinal-cord injury he suffered in could top $20 million a year. A the 2003 Staten Island ferry crash deal would include prime signage Selected deals announced during the week of Aug. 31 for companies headquartered in metro New that killed 11 people.The ferry’s in and around the ballpark, but not York. GCI: Growth capital investment represents new money invested in a company for a minori- Bear repairs ty stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing pilot was on painkillers and naming rights. shares of a company without the participation of a financial buyer. the former Bear Stearns Cos., extremely fatigued when the —from staff reports and

bekka lindström bekka now part of J.P.Morgan Chase & accident occurred. A judge will bloomberg news reports

16 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 17 9/11/2008 8:11 PM Page 1

NEIGHBORHOOD JOURNAL

which owns the land adjacent to Big Laurelton developers zoned out Ikea, says reports that BJ’s is in the bag have been exaggerated and that concerns over traffic are premature. can save the homes that are left,” are getting anxious about the fate of they have to alleviate traffic?” “A lot of people are interested in Queens residents says Mr. Sanders, “and protect the the lot next door. Rumors are Although the community also the space,” he says.“We have multi- win battle over community from overdevelop- swirling that BJ’s Wholesale Club, feared Ikea’s impact on traffic before ple possible tenants, and not neces- ment.” the huge membership retail chain, it was built,notions that its presence sarily big-box retail.” large-scale, out-of- —hilary potkewitz may be near to setting up shop on would tie local traffic in knots have Unless Thor finds a manufactur- character buildings the former site of the Revere Sugar proved to be largely unfounded. In er to take the space however, the site Factory.Many residents are worried fact, residents have praised the will need to be rezoned. That aced with what many Big-box rumors about the additional traffic it would Swedish chain’s efforts to alleviate process would allow locals an op- labeled “runaway devel- swirl in Red Hook generate. traffic problems, including partici- portunity to demand the kinds of opment,” residents of “My question would be: Is this pating in a local community board provisions handed out by Ikea, in- Laurelton have been just a few months after Ikea, the the straw that breaks the camel’s meeting last week to discuss im- cluding a jobs program and access to struggling for years to big-box furniture store, opened its back,” says local property developer proving the traffic plan. the waterfront. Fget some kind of relief. Two weeks doors in Red Hook, Brooklynites Greg O’Connell. “What plans do A spokesman for Thor Equities, —matthew sollars ago they received it when the City Council approved a “down-zoning” of about 220 blocks of the residen- tial Queens community, halting the construction of additional condo complexes and multifamily build- ings.The new regulations set a max- imum height of just 35 feet for new construction. The victory comes at a time when many areas have lost similar battles. Just a year ago, the City Council approved the largest rezon- ing measure in the city’s history, which opened up much of a nearly 400-block swath of Jamaica to denser development.

HOUSE-PROUD: Laurelton homeowners want to preserve the neighborhood’s character.

“This has been a four-year bat- tle,” says City Councilman James Sanders, who represents Laurelton. “This is one of the most sought-af- ter areas to live, and everyone is try- ing to get in—for good reason.” The largely black, middle-class neighborhood has a population of 50,000 and is dominated by Tudor- style homes and neatly manicured lawns.In recent years,its population has been growing at a rate of about 5% per year. To accommodate that growth, FIFTH single-family, detached homes were being knocked down and,according to Mr. Sanders, “seemingly MEETS CUTTIN overnight, monstrosities were ACTER G-EDGE springing up like poisonous mush- HAR rooms.” E C In a study of the zoning propos- ER al, even the Department of City H 180,000 RSF Planning termed much of the new W HEADQUARTERS SUBLEASE OPPORTUNITY construction in Laurelton “incon- sistent with the established building 150 Fifth is the perfect collaboration of character, style and a state-of-the-art work environment. This headquarters opportunity features patterns,” and warned that it has high ceilings, flexible floor plates ranging from 6,760 to 21,818 SF, an above-standard installation, a mix of perimeter offices and open areas, “begun to alter the character of this numerous conference rooms and a landscaped rooftop terrace with adjoining dining area and kitchen. Located at the heart of the Flatiron neighborhood.” District, this unique property is surrounded by hip retail, inspired cuisine and numerous corporate neighbors. The rezoning comes at a crucial time. In recent months, the number All the characteristics for success. of vacant homes in Laurelton has in- FOR LEASING INFORMATION PLEASE CALL: creased as the area has been swept up MATTHEW R. ASTRACHAN - Executive Vice President - 212-841-7904 - [email protected] in the foreclosure crisis; foreclosure ROBERT C. GALLUCCI - Senior Director - 212-841-7872 - [email protected] rates in Queens are the highest in SCOTT A. SILVERSTEIN - Associate - 212-713-6797 - [email protected] the city. “Thanks to the down-zoning we

September 15, 2008 | Crain’s New York Business | 17 CNYB 09-15-08 A 18 9/11/2008 8:41 PM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS SEPTEMBER 17 SEPTEMBER 18 holds conference on project today’s philanthropists. 4 p.m. to 6 p.m., SEPTEMBER 16 New York Society of Professional 1209 Enterprise, Women’s Chamber of management. 7:30 a.m. to 6 p.m., Credit 135 E. 22nd St., room 301. Free. Gold Place Network holds networking Engineers holds lecture on liability Commerce and Minority Business Suisse, 1 Madison Ave. Fee: $200 (646) 660-6743 or reception. 8 a.m. to 10 a.m., insurance. 5:15 p.m. to 8:30 p.m., Entrepreneur magazine hold networking members, $225 nonmembers in [email protected]. 545 Eighth Ave., suite 18NE. Fee: $15. Connolly’s, 121 W. 45th St., third floor. reception. 6 p.m. to 10 p.m., Temptress advance; $50 additional for all at the SEPTEMBER 23 (212) 465-8080 or Fee: $50 members, $65 nonmembers. Yacht,West 43rd Street and 12th Ave. door. (908) 565-1093. National Business and Disability [email protected]. (212) 879-7300, ext. 10. Fee: $50 members, $75 nonmembers. Council holds seminar on learning SEPTEMBER 16 SEPTEMBER 17 (646) 322-0052 or SEPTEMBER 22-28 disabilities in the workplace. 8 a.m. to TiE Tristate and White & Case hold Networking for Professionals holds [email protected]. SEPTEMBER 22 10:30 a.m., Ernst & Young, 5 Times seminar on infrastructure and energy networking reception. 6 p.m. to 8 p.m., SEPTEMBER 18 Human Resources Association of New Square, Fee: $25 members, $35 investment in India. 6 p.m. to 8 p.m., Porcao, 360 Park Ave. South. Fee: Score NYC holds seminar on Web sites York holds lecture on 2009 budget nonmembers. (516) 465-3751 or 1155 Sixth Ave. Fee: $25 members, $75 $44.90 members, $54.90 nonmembers. for small business. 10:15 a.m. to 1 p.m., planning. 8 a.m. to 10:30 a.m., Club [email protected]. nonmembers. (646) 530-8985. (212) 227-6556 or New York Public Library Science 101, 101 Park Ave. Fee: $35 students, SEPTEMBER 23 SEPTEMBER 17 [email protected]. Industry and Business Library, 188 $65 members, $100 nonmembers. Association for Strategic Planning New York Public Library Science Madison Ave., lower level. Fee: $45 in (877) 625-4769. Metro New York Chapter holds lecture Industry and Business Library holds More meetings online at advance, $55 at the door. SEPTEMBER 22 on strategic thinking and best practices. information session on stock research. www.crainsnewyork.com (212) 264-4507 or [email protected]. Baruch College’s School of Public 6 p.m. to 9 p.m., New York Institute of 4:15 p.m. to 5:30 p.m., 188 Madison Click on “Events” SEPTEMBER 19 Affairs Center for Nonprofit Strategy Technology New Technology Building, Ave., lower level. Free. (212) 592-7000. The New York City Chapter of PMI and Management holds seminar on 16 W. 61st St., 11th floor. Fee: $15 students, $25 members, $35 nonmembers. (212) 261-1676. SEPTEMBER 23 Net@Work, DeVore & DeMarco, and Hig Insurance hold seminar on information security and privacy. 8:30 a.m. to 10:30 a.m., New York Bar Association, 42 W. 44th St. Free. (646) 293-1726. SEPTEMBER 23 New York Commercial Real Estate Women and the Association of Real Estate Women hold program on global real estate investing. 6 p.m. to 8 p.m., First American Title Insurance Co., 633 Third Ave. Fee: $50 members, $85 nonmembers; $10 additional for all at the door. (212) 499-6565 or [email protected]. SEPTEMBER 24 Women in Housing and Finance holds networking reception for new and prospective members. 6 p.m. to 8 p.m., Calle Ocho, 446 Columbus Ave. Fee: $20 students, $30 general. Registration required by Sept. 19. whfnyc@gmail.com. SEPTEMBER 24 New York American Marketing Not everything in life requires teamwork. Association holds program on branding for nonprofits. 6 p.m. to 8 p.m., But it sure helps with litigation. Foundation Center, 79 Fifth Ave., second floor. Fee: $35 members, $55 nonmembers. (212) 687-3280 or [email protected]. SEPTEMBER 24 NYC Business Networking Group holds workshop on financing business growth. 6 p.m. to 8 p.m., Banco Popular, 441 Second Ave. Free. Registration required. (212) 679-1201 or [email protected]. SEPTEMBER 25 Manhattan Chamber of Commerce holds networking reception on preparation for board appointments. 8 a.m. to 10 a.m., 3 West Club, 3 W. 51st St. Fee: $25 members, $40 nonmembers. (212) 473-7805 or [email protected]. SEPTEMBER 26 Real Estate Media holds conference on RealShare New York. 8 a.m. to 2 p.m., Roosevelt Hotel, 45 E. 45th St. Fee: $275. (917) 464-0363 or [email protected]. SEPTEMBER 29-OCTOBER 5 SEPTEMBER 30 When you’re faced with litigation issues, it can seem like a long road ahead. And since it can be )lled with bumps and American Business Women’s Association holds networking reception. 5:30 p.m. to 8:30 p.m., Ilily Restaurant twists, it’s best not to try to go at it alone. At Buchanan Ingersoll & Rooney, we o+er you some of the best, most experienced and Lounge, 236 Fifth Ave. Free. (212) 387-8134 or [email protected]. litigation attorneys in the business. And when you need it, they o+er you access to a whole team of other professionals —maia blume in our law )rm—across the country and across practice areas, from Real Estate, Corporate Finance and Intellectual TO LIST YOUR EVENT Property to Tax, and Labor and Employment. Learn more about our litigation attorneys, as well as the rest of our team, Crain’s lists business meetings online and includes them in the print edition on a space-available basis. at buchananingersoll.com/team. We’re ready to go the extra mile for your most complex legal problems. Events in New York City with admission fees of less than $300 are considered for the print publication. Listings can be submitted only through the Crain’s Web site. To submit a calendar listing, go to www.crainsnewyork.com and click on “Events.” MAKING A CASE FOR TEAMWORK Sponsors have a choice of several free or paid list- ing options. All business events will be posted online within two business days. Crain’s can neither confirm receipt of listings nor say if or when event listings will appear in the print edition.

18 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 19 9/11/2008 2:50 PM Page 1

REAL ESTATE INSIDE Affordable housing gains favor as market-rate sales falter PAGE 26 CoStar’s 2Q submarket reports PAGE 29 The largest real estate investment trusts in the New York area PAGE 30

Industrial buildings are hot properties Rents rise in one sector that’s not affected by slump

BY WENDY DAVIS space at the city-owned Brooklyn Navy Yard used to be a bargain. When SurroundArt moved in four years ago, the rent was around $6 a square foot. But this year, when the company went looking for an additional 96,000 square feet of space at the yard, it got good news and bad. Yes, the Navy Yard had the space, in a brand-new building no less, but the price in the gat- nichols sandy ed industrial park had more than tripled—to $20 a square foot. Michael Murray,chief exec- utive of the company that packs up and stores exhibits for some Playing by new rules of the world’s leading museums, See INDUSTRIAL on Page 20 IN EARLY JULY, bulldozers began digging the foundation at Mr. Greenburger says. “They advised us to come back to 50 West St. for what will become a gleaming 65-story tower them in the spring.” GOING UP housing a hotel and condominium.The $600 million Welcome to the club. Many property developers and Average industrial space rents* question: When? investors across the city are biding their time, waiting for Francis Greenburger, chief executive of the building’s market conditions to ease up enough for money to flow to developer,Time Equities, says he plans to take a leisurely 12 worthy projects—like theirs. Meanwhile, even for those months to complete the foundation, which his firm is with financing in place, the rules of the game have changed financing itself, because he has yet to lock in a dramatically since the financial crisis began last year. $8-$12 $12-$16 —andrew marks 2003 2008 construction loan for the rest of the 580,000-square-foot project. ALTERED FINANCIERS turn DEVELOPERS adjust BUILDERS are *Per square foot, outside Manhattan. more finicky, more to tougher loan getting the cold Source: CB Richard Ellis Inc. “Our main bank group told us they can’t do it now,” STATES rare Page 22 terms Page 23 shoulder Page 24

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September 15, 2008 | Crain’s New York Business | 19 CNYB 09-15-08 A 20 9/11/2008 6:33 PM Page 1

REPORT REAL ESTATE COURTING dustrial space in Brooklyn, Queens square foot.Five years ago,prices for and Manhattan has been rezoned both types of properties ranged CHINA Industrial strength and converted to residential or from $100 to $125 per square foot, IN RECENT YEARS, Chinese buyers mixed residential/industrial use, ac- according to John Ritter, executive have been so active in the cording to Adam Friedman, execu- vice president of Sholom & Zucker- industrial space market that Continued from Page 19 rising even as the market for office tive director of the New York Indus- brot Realty, a Long Island City, some brokers have hired Chinese swallowed hard and paid up for the and residential space softens. The trial Retention Network. Queens-based firm specializing in speakers to help win that deal,which offers the company exclu- effect is clearly evident in rising industrial brokerage. business. Steep increases sive use of the building as well as prox- rents and prices for manufacturing Fred Schwam is seeing firsthand Nine years ago, CB Richard imity to Manhattan-based clients. and warehouse space. that reduction in supply has how expensive industrial space has Ellis Inc. hired Dorothy Chuang, “For brand-new warehouse space, “It’s one sector that hasn’t fallen helped to ratchet up prices of such become. The owner and chief exec- who is fluent in Chinese, in its that’s simply where we’re at,”he says. on hard times,” says John Reinert- properties steeply. Small industrial utive of American Christmas Inc. is Saddlebrook, N.J., office “And access is really important to us.” sen, senior vice president at CB buildings in the boroughs outside keen to expand his holiday decorat- specifically to do just that. Driven by a growing number of Richard Ellis Inc. “People are chas- Manhattan sell for as much as $400 ing firm. At present, he pays an av- Last summer, CBRE added large and small companies that feel ing a diminishing product.” a square foot, while warehouses erage of $9 a square foot on leases much the same way, demand for in- In the past seven years alone, larger than 50,000 square feet com- signed over the past eight years to two Chinese-speaking brokers to dustrial properties across the city is nearly 19 million square feet of in- mand as much as $200 to $225 per rent 65,000 square feet in the what is now a three-person operation, headed by Ms. Chuang, a vice president. She notes that much of the demand she sees is coming from food companies serving restaurants and grocery stores, PRESTIGIOUS and also from importers who OPPORTUNITY need warehouses for their goods. Soundview section of the Bronx.He is scouring the Bronx for new space but has found asking prices as high 400PARKAVE as $15 a foot. “There is not a lot of truly desir- ENTIRE FLOOR OF 9,141 SF able space available, and the land- PARTIAL FLOORS FROM 3,845 - 7,150 SF lords are asking extraordinary num- bers,” he says. Prominent Park Avenue location with a Rather than pay up, he is renting prestigious tenant roster an extra 15,000 square feet of ware- house space in Jersey City, where he State-of-the-art security pays just $6 a square foot. High-end pre-built space Operable windows Higher floors are cheaper Conveniently located steps from instead of abandoning New York altogether, some firms are shifting to Grand Central Terminal higher floors to save money. On-site marketing center NYIRN’s Mr. Friedman says that companies are now willing to consid- er space on upper stories.In doing so, they are trading the convenience of ground-floor space and loading docks for slightly cheaper space. With demand for such space rising, developers are starting to take notice. “We’re starting to see more mul- tistory construction—which was unheard of just a few years ago—and the revival of multistory buildings that were once considered obsolete,” Mr. Friedman says. One of the city’s biggest industri- al landlords is also hopping on that bandwagon. Taking note of strong demand for such space, Brooklyn Navy Yard Chief Executive Andrew Kimball says that he plans to add more than 1 million square feet of leasable space in the next two years— all of it in multistory structures. “As the city population grows, more and more industrial firms will pay a premium to be close to their end users,” he says. That willingness to pay a bit more is also fueling more interest in brown- field sites, where previously cleanup costs were thought of as being too Gregory T. Scott high to be financially feasible. Pan- 212-883-0526 theon Properties recently partnered [email protected] with Oak Point Properties to develop Oliver Katcher a 28-acre former garbage dump in the 212-883-0526 Bronx. The company plans to clean [email protected] up the site for industrial use. “There’s a finite amount of space www.RFRrealty.com and increasing demand,” says Mr. Reinertsen. “The industrial market shows no signs of slowing down.”

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20 | Crain’s New York Business | September 15, 2008 Project3 9/11/08 4:16 PM Page 1

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REPORT REAL ESTATE Financiers THEN AND NOW The terms of loans for real estate deals have changed dramatically in the past two years. Remaining lenders hike 2006 2008 Max. portion that a lender will finance 90% 75% Previous experience with borrower ... Not needed Essential demands, yet land deals Projects that take years to turn a profit ... OK No way Rate spread over 10-year Treasuries 60-150 bp* 250-400 bp* Ranks thinned by an army of lenders with bottomless spring of last year—a group includ- Loans begin amortization within ... 5-10 years 1-3 years pockets—which once chased devel- ing Wachovia, HSBC and Corus *Basis points. Wall St.’s pullback, opers down every street in town— Bank—have pulled back radically. has vanished without a trace. These “Having the commercial mort- creditors bet only on days, almost any financing has be- gage-backed securitizers on the we wouldn’t have been able to com- tor at Manhattan-based real estate sure things; sales fall come cause for celebration. sidelines changes everything,” pete for two years ago.” firm Walter & Samuels Inc. As a re- points out Carl F. Schwartz, the The situation is much the same sult, he says, borrowers are getting Funds in lockup chair of the real es- for the other lenders that remain ac- either financing terms that don’t BY ANDREW MARKS the chief problem tate practice at Her- tive in New York’s commercial make sense for the deal, or an out- is the freezing of Wall rick Feinstein. property market. The list includes right “no.” in june, Metropolitan National Street’s great money The relatively several German banks—Helaba Walter & Samuels itself got a Bank made a move that has become machine, which be- small handful of Bank and Hypo Real Estate Bank “no” from a number of banks before increasingly unusual: It agreed to gan with the dawn of lenders that remain among them—as well as several the firm finally landed one of lend $40 million to a de- the credit crisis in in the game can, and smaller local lenders, such as Met- the largest construction loans in the veloper converting a the summer of 2007. do, demand provi- ropolitan National Bank and New city this year: a $165 million credit Class B office building Once, in- sions from their bor- York Community Bank. from Wells Fargo.The loan will per- on Park Avenue into ALTERED vestment rowers that were But a handful of German banks mit the completion of the second office condominiums. STATES banks were unthinkable just a and local middle-market lenders phase of the condo conversion for Mark DeFazio, the able to fun- couple of years ago. can’t take up the slack left by the the four residential floors at 15 E. bank’s chief executive, proudly calls nel huge amounts of Despite their tight- absent giants.The impact is clear in 26th St. the deal “a slam dunk for us,” and funds into office build- er standards, those the sales figures for office buildings. The price of the financing was it’s easy to see why. ings by turning loans institutions find that Year-over-year volume through high, however. Walter & Samuels The bank had financed three into marketable pack- they are flooded with the second quarter is down 59% in got its funding only after agreeing to earlier deals for the same developer. ages known as com- loan applications. Manhattan, according to Cush- pay a quarter of the project’s cost it- The building is almost fully rented mercial mortgage- “We’re sticking man & Wakefield’s capital markets self—up from the 18% the develop- under leases that will all expire with- backed securities and to our traditional group. er had put into the first phase. in five years. And best of all, Metro- selling them to investors.In the first criteria and have gotten more cau- Even the initial lender for the politan National Bank put up only half of this year, the volume of tious in certain ways,” says Mr. Small and select project, Deutsche Bank, balked at 75% of the developer’s costs. Little such issues plummeted 90% from DeFazio, noting that, among oth- those deals that are getting fund- financing the second phase, despite more than a year ago, 90% was con- year-earlier totals, barely topping er things, construction loans are ed are the cream of a small crop.One the fact that 80% of the units in the sidered de rigueur. $12 billion. pretty much “off our radar.” example is the financing for The first round of construction had al- Welcome to the new world of In response, lenders that domi- Nonetheless, he reports, “we’re see- Carlyle Group’s $525 million acqui- ready sold.The developer also had a real estate finance, a world in which nated the market as recently as the ing deals coming to us now that sition of the retail portion of 666 blue-chip investor: an investment Fifth Ave., which took place in July. fund run by an arm of none other The space is fully leased, and rents than Deutsche Bank. are the city’s highest. “We had a very tough time when “The banks’ principal concern we went to market for the loan,” now isn’t making good loans; it’s sums up Mr. Weiss. making sure they don’t get burned,” says Peter Weiss, a managing direc- COMMENTS? 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22 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 23 9/11/2008 2:54 PM Page 1

REPORT Developers Buyers’ strategy: wait and see

“There were too many speculative Credit drought, developers willing to pay through tougher terms force the nose and too many banks willing radical downshift to finance them on easy terms.” New rules these days, however, easy terms BY ANDREW MARKS are a thing of the past for all devel- opers—including Mr. Orbach. how times change. One year ago, Even though his company has been investors went on a rampage in the around for more than six years and city, snapping up 346 buildings in a owns 3,000 rental apartments, the record-smashing $48 billion shop- rules have changed.The company’s ping spree.This year, many of those primary lender, New York Com- same institutions and individuals munity Bank, said it would not fi- are sitting on their hands as the nance more than 70% of the cost of ocean of easy money that the property. That compares with fueled the boom has van- the 90% or better that many credi- ished. tors had routinely “Real estate deals are ALTERED been willing to put up much less attractive now STATES before the dawn of the from an investment stand- financial crisis. point, because the cost of debt has Peter Weiss, managing director become so much higher,” says Scott at real estate investment and man- Singer, vice president at Singer & agement firm Walter & Samuels Bassuk, a real estate finance and Inc., recently found himself facing brokerage firm. even tougher terms. When he Buyers are also facing far tougher agreed to buy a 225,000-square-foot loan terms. They are being asked, commercial office building at 80-88 for example, to start paying off their West End Ave. for $92 million, his loans—as opposed to simply paying bank said it was willing to lend him interest—in as little as two years. no more than $50 million. Previously, five- or even 10-year in- “Two years ago, we’d have gotten terest-only loans were common- a $70 million first mortgage instead place. of what we ended “All that very up with,” says quickly eats into a Steve Forest, exec- developer’s ability utive managing di- Times Square - The Ultimate to make a project rector at Walter & work,” he says. Samuels. “That is Hardest hit are incredible when New York Location the highly lever- you consider that aged buyers of last year, [über-de- yore, the individu- veloper Harry] als and institutions Macklowe bought that dominated the a $7 billion portfo- market only a year lio of buildings ago. With those with about $50 players now side- million cash.” lined, property What makes prices are begin- Mr. Forest’s story ning to sag. In re- even more telling sponse, a more traditional, longer- is that Walter & Samuels’ equity term buyer is starting to re-emerge. partner is none other than a real es- Meyer Orbach, chief executive tate investment fund managed by of New Jersey-based The Orbach Deutsche Bank, the West End Av- Group, is a classic example of the enue project’s lender.Without those new market dynamic. In July, in his sorts of ties, as well as lengthy track first-ever foray into the New York records,many developers are finding • Entire 5th floor 13,800 sf market, he purchased a package of that banks are unwilling to lend even 13 apartment buildings on West half of the cost of an acquisition. • Available December 2008 49th Street with total of 254 rental With more of their cash now on • Work letter available to qualified tenants apartments.The price was $70 mil- the line, buyers are getting very de- • 100% commission paid on signing lion—12.5% less than the seller had manding, too. In the West Side • Across from the new New York Times Building wanted a year earlier. buildings that Mr. Orbach bought, • 24/7 building access and building security for example, half of the apartment • Convenient to all transportation Pounced on deal units are rent stabilized. Down the mr. orbach called the original road, that will mean increases in rev- FOR LEASING INFORMATION PLEASE CONTACT: $80 million price tag “too rich for enues as those apartments turn over. Grant Greenspan my blood.” When the seller with- “Maybe it’s not the kind of deal 212-471-4340 • [email protected] drew the buildings later in the year, that would have attracted most of Mr. Orbach kept his eye on the the developers in the market a cou- block. When the deal came back to ple years ago,but I’m happy with it,” the market, he pounced. he says. THE KAUFMAN ORGANIZATION “Before the subprime mess, I WWW.KAUFMANORGANIZATION.COM wouldn’t have had a chance,”he says. COMMENTS? [email protected]

September 15, 2008 | Crain’s New York Business | 23 CNYB 09-15-08 A 24 9/11/2008 2:55 PM Page 1

REPORT REAL ESTATE

Builders one thing to say you’re willing to bet a certain amount of equity,but when the bank tells you you’re going to be personally on the hook for as much Construction is up against a wall as 25% of the mortgage, that’s a real buzz kill,” says Jeff Levine, chair- man of Douglaston Development. ened up their standards and ratch- In addition, builders complain “You really have to feel like your High interest rates, new requirements eted up interest rates as well. about a raft of new requirements project is a sure thing.” make financing deals hard to come by Basic floating-rate con- from creditors. Topping their list of struction loans, for exam- irritants are demands Lucky to close on deal still pales in comparison with that ple, now carry interest ALTERED that developers do happily for Mr. Levine, that is ex- BY ANDREW MARKS facing builders. In a market where rates that are 4 percent- STATES everything from guar- actly what he thinks his three-build- construction costs are still sky-high age points above the rate anteeing completion ing, 1,000-unit condominium proj- as hard as it is for developers to and demand for new commercial banks charge each other for money. of their projects to putting a portion ect on the Williamsburg waterfront line up funding to purchase build- and residential space has become That represents a tripling in the of their personal assets on the line. will turn out to be. But Mr. Levine ings these days, their predicament highly uncertain,lenders have tight- spread of two years ago. “When you’re doing a deal, it’s is one of the lucky ones. He closed on his financing in June of last year, when creditors were just beginning to tighten up their standards. In the end, he agreed to a struc- tured deal consisting of a $400 mil- lion senior loan with a 75% loan-to- cost ratio. Crucially, though, he was able to line up mezzanine funding for the $500 million-plus project that boosted the loan-to-cost ratio Teammates to nearly 90%. He did, however,

Announcing the merger of Jones Lang LaSalle and The Staubach Company

fund a special account that will be used to pay interest on his loan in the event that condo sales are slower than anticipated. Beyond that, to up its odds of success,Douglaston plans to drag its feet, slowing construction so that the building won’t be completed for another 18 months.

Two real estate firms – with different strengths and complementary Good timing cultures – have become one company for one reason: to provide more “that way, we have a shot at being value to our clients. positioned to come on the market when the recession is over,” says Mr. Levine, who despite all the strings At Jones Lang LaSalle, we’re known for meeting the comprehensive real attached by his lenders nonetheless estate needs of owners, occupiers and investors around the world. The counts himself lucky. Staubach Company has built a reputation for strategic solutions for users “If I were marketing a construc- of office and industrial real estate. tion loan on this project today, I probably couldn’t get financing on it Colin Dyer Roger Staubach Clients can now take advantage of our combined in-depth local market CEO and President Executive Chairman, Americas that would make any economic knowledge, as well as our ability to seamlessly deliver our services Jones Lang LaSalle Jones Lang LaSalle sense,”he says.“The terms banks are asking now make it impossible.” locally, nationally and globally. That is precisely the position that Francis Greenburger, chief ex- One company. One team. Continuing what we have both always done – ecutive of Time Equities,finds him- putting our clients’ interests first and foremost in everything we do. self in. Mr. Greenburger believes banks will balk at financing more For more information, contact: than 65% of his 65-story hotel-and- condominium project on West Peter G. Riguardi Street, where foundation work has just begun.That is, assuming he can +1 212 812 5719 find a lender. “We’re just hoping that next spring things will be better and mar- www.us.joneslanglasalle.com ket conditions will be more con- ducive to financing a big deal like this,” he says.

COMMENTS? [email protected]

24 | Crain’s New York Business | September 15, 2008 Project4 9/8/08 3:15 PM Page 1

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REPORT REAL ESTATE Affordable builders escape worst of the market woes

Though slower, but we are still building affordable stricted Linden Plaza in East New projects,”says Les Bluestone,a part- York, Brooklyn. projects proceed ner in Blue Sea.To make the project The sector’s low risk is part of its feasible the company is eliminating attraction for lenders. Funding be- because funding, bells and whistles like the extra comes easier to obtain once a devel- tenants are assured landscaping. oper has obtained government sup- While market-rate developers port—and finding tenants certainly watch their extraordinary boom dis- isn’t difficult. ONE JUST LIKE IT: Blue Sea is BY STAN LUXENBERG appear in the rearview mirror, their undertaking another project counterparts in the affordable mar- Steady stream down the street in Harlem. when blue sea Development Co. ket are pressing ahead—albeit a lit- “when you build luxury condos, renovated a 200-unit building on tle more slowly. The reasons: De- you run the risk that the units won’t West 134th Street in Harlem last mand for affordable housing is sell,” says Michael Lappin, presi- year, it added such amenities as a stronger than ever; and funding— dent of Manhattan-based Commu- landscaped plaza.Though the credit typically a public-private mix—is nity Preservation Corp. “When we crunch has sidelined many market- still available, despite large cutbacks finish an affordable project with 50 rate residential projects, Blue Sea, a elsewhere in the real estate market. units,3,000 people will apply for the Manhattan-based builder of afford- As an example of that strength, apartments.” able housing, is drawing up plans for Freddie Mac recently agreed to pro- It isn’t surprising, then, that the a similar venture half a block away. vide nearly $74 million to rehabili- Department of Housing Preserva- “Financing has gotten tighter, tate the 1,527-unit, income-re- tion and Development reports that bekka lindström bekka

the number of affordable units com- housing budgets controlled by the pleted during the fiscal year that Manhattan borough president and ended in June fell just 8%,to 17,008. other local officials. That relatively modest decline Additionally, the New York looks especially good next to the State Affordable Housing Corp. is- precipitous drop in the overall resi- sued bonds that backed loans for the dential market. During the first five project, and the city chipped in land months of 2008, permits issued for at a below-market price. With that residential construction in the city package, it became relatively simply were down 43% from the year-ear- for Loewen to secure a convention- lier period, according to the Census al loan from Washington Mutual. Bureau. In many cases, what makes But affordable housing is not en- building affordable housing pay off tirely divorced from the rest of the is that, in return for delivering such market. Public funding—including for the 80-20 New Construction Housing Program, which gives de- velopers cut-rate financing for re- serving 20% of their units for low- income residents—has been pared back. The slumping economy has also affected the sale of federal low-in- come housing tax credits, which are a key source of money for many projects. “If you don’t have profits to shel- ter, then there is not much reason to pay for tax credits,” says Matt Schwartz, a principal with Domain Cos., a Manhattan developer. LOEWEN assembled funds from a variety of sources for a project at East 111th Street. Fewer credits such credits often provide 25% or more of the financing for affordable badly needed apartments, develop- housing. For instance, Blue Sea es- ers are allowed to include more mar- timates that its next project in ket-rate units than would otherwise Harlem will cost $16 million. be permitted. A few months ago, the developer That is the case at a mixed-use forecast that tax credits would pro- project on West 116th Street near vide $4.6 million of that figure, but Adam Clayton Powell Boulevard Mr. Bluestone now thinks they will that’s nearing completion. The $10 generate only about $3.7 million. million property’s 36 apartments in- To surmount financing prob- clude seven affordable units. lems, builders are getting more cre- “We will lose $300,000 on each ative, cobbling together money of the affordable units,” says Ken- from a variety of sources. neth Olson, president of POKO Loewen Development is not us- Partners in Port Chester, N.Y., the ing any tax credits for a $75 million, developer. “But the project will do 211-unit condominium building well because we have already sold that it’s putting up at East 111th the market-rate units.” Street and Madison Avenue. The firm began with small grants from COMMENTS? [email protected]

26 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 27 9/11/2008 2:59 PM Page 1

REPORT REAL ESTATE

Group with his colleague,Stefany Di Deals Manno.Urban Archaeology also has a showroom in TriBeCa. Lori Peddrick, a broker with Toy seller FAO Schwarz Rice and Associates, negotiated on behalf of Urban Archaeology. a bigger player in building —adrianne pasquarelli Building renovation um building, was $125 a square foot. tom- and salvage-design collections. works for ad group After large deal with The firm, which sells everything “The location is in the heart of the Macy’s, signs lease from kitchen tiles to antique stair design district, with the D&D as part of a lease renewal deal, the rails, is relocating from East 58th Building down the street,” says Association of National Advertisers to double its space Street in order to quadruple its Robert Futterman, founder of is expanding its presence at 708 Third on Sixth Avenue square footage. In its new home, the Robert K. Futterman & Associates, Ave., bringing its total space there to 708 THIRD AVE. will house an expanded store will be able to display its cus- who represented landlord the Clarett See TRADE GROUP on Page 28 Association of National Advertisers. oyland’s headquarters is expanding,and it’s not at the North Pole. FAO Schwarz signed a 10-year lease Tthat will more than double its office space at 875 Sixth Ave. to nearly 18,800 square feet. The asking rent for the space at the building between West 31st and West 32nd streets was $45 a square foot. The toy giant will be taking over the building’s entire 19th floor shortly. It had already been leasing the entire 20th floor. FAO Schwarz’s broker, Dan

875 SIXTH AVE. is the site of toy seller FAO Schwarz’s larger headquarters.

Gronich of Grubb & Ellis Co., says the company needed more space af- ter signing a deal in May to operate its shops in up to 275 Macy’s stores by this fall. FAO Schwarz stores are scheduled to open in about 685 Macy’s stores in the next two years. Mr. Gronich says the deal was a winner because it allows FAO Schwarz to concentrate on its new initiative instead of conducting a time-consuming real estate search. “The company really wanted to focus on the new business,” he says. Sierra Realty Corp. owns and operates the building and was repre- sented in-house by Peter Braus. —theresa agovino Urban Archaeology quadruples space upscale-housewares retailerUr- ban Archaeology signed a 10-year lease for 3,700 square feet at 207 E. 57th St., at Third Avenue.The asking rent for the space, which is on the ground floor of a luxury condomini-

September 15, 2008 | Crain’s New York Business | 27 CNYB 09-15-08 A 28 9/11/2008 3:01 PM Page 1

REPORT Trade group expands

Continued from Page 27 inked a five-year lease for 6,200 about 18,300 square feet. square feet at 461 Fifth Ave., between The trade group, which repre- East 40th and East 41st streets. It is sents marketing executives at major the first Manhattan office for the corporations, will take about 7,500 fund based in London and São Pao- square feet of space at the building lo, Brazil. located between East 44th and East Autonomy will be moving onto 45th streets. It will move into the the entire 11th floor soon.The ask- new space—the entire 34th floor and ing rent for the space was $100 a roughly a third of the 23rd floor—by square foot. the end of the year. It already occu- The fund was attracted to the pies all of the 32 and 33rd floors as space because it is fully furnished well as part of the second.The asking and offers great views and a conven- rent was $70 a square foot. ient location. Owned by Marx Realty, the building is in the midst of a renova- tion that will include a new lobby and corridors.The owner is spending be- tween $8 million and $10 million on the overhaul, which is expected to be completed in the second quarter of this year, says Sloane Rhulen, a bro- ker at CB Richard Ellis Inc., who represented the landlord with her colleague John Powers. Ms. Rhulen says that Marx, which had owned 50% of the build- ing but bought out its partner about a year ago, hopes the improvements will raise the building’s profile among tenants seeking a location close to Grand Central Terminal. Since the beginning of the year, Marx has signed eight leases for a total of 45,000 square feet. 461 FIFTH AVE. is the first Manhattan The upgrade was one reason the location for hedge fund Autonomy Capital. association chose to stay and expand in the building, says Jeffrey Peck, a broker at Studley who negotiated Robert Emden and Jeffrey on behalf of the tenant along with Kahn, brokers at PBS Real Estate, colleague Daniel Horowitz. Mr. represented the tenant. Landlord Peck also noted that the trade group SL Green Realty Corp. was repre- has many visitors, so the location sented in-house by Larry Swiger, near Grand Central is a key benefit. senior vice president of leasing. —theresa agovino —theresa agovino Upper West Side Real estate funder draws retailer expands on Park the upper west side will soon be ing real estate finance, a divi- able to put on a new face. Malin + sion of giant Dutch insurer ING Goetz,an apothecary and cosmetics Group, is expanding its footprint at company, recently signed a 10-year 230 Park Ave. lease for a diminutive, 400-square- The real estate investment firm foot shopfront at 455 Amsterdam Ave., recently signed a five-year lease for at West 81st Street.The asking rent 9,700 square feet on the ninth floor for the corner space, the business’s of the 34-story building owned by second retail location after its Monday Properties and Goldman Chelsea store, was $250 a foot. Sachs. “We thought it was a beautiful The new lease represents an ex- neighborhood—young and hip, not pansion for ING, which occupies stodgy,” says Andrew Goetz, co- about 200,000 square feet on floors founder of Malin + Goetz. He also 11 through 15 and has resided in noted that his business will continue the building for more than two the beauty theme of the new space, decades.The asking rent for the ad- formerly a Puerto Rican-owned bar- ditional space was $80 a square bershop. After redecoration, the foot. store should open by March. Mr. Craig Panzirer of Monday Prop- Goetz is looking at other locations erties negotiated the deal in-house. for more Manhattan shops. Brokers Bill Iacovelli and Mark Rafe Evans of Walker Malloy & Ravesloot of CB Richard Ellis rep- Co.negotiated on behalf of the land- resented the tenant. lord, while Simone Lillian of Sinvin “Expansions like this are good Realty represented the tenant. news for the finance industry, con- —adrianne pasquarelli sidering what’s going on in the economy,” says Mr. Iacovelli, who wrapped up the deal last month. Hedge fund roots ING Real Estate Finance will on Fifth Avenue move into its new space by the end of the year. hedge fund Autonomy Capital —damian ghigliotty

28 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 29 9/11/2008 3:02 PM Page 1

REPORT REAL ESTATE

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September 15, 2008 | Crain’s New York Business | 29 CNYB 09-15-08 A 30 9/11/2008 8:26 PM Page 1

REPORT REAL ESTATE NY’s Largest Real Estate Investment Trusts Ranked by total square footage owned in the New York area

2007 2008 2007 funds from NY area NY area operations 2007 Equity NY area Phone/Web site/ sq. ft. owned sq. ft. owned (in millions)/ revenues market cap properties Rank Company/Ticker symbol Chief executive (in thousands)1 (in thousands)2 % change3 (in millions)4 (in millions)5 owned6 Property focus

SL Green Realty Corp. (SLG) (212) 594-2700 30,598.6 30,552.3 $358.0 $1,101.3 $4,953.8 61 Office 420 Lexington Ave. www.slgreen.com +60.1% Dow Jones Wilshire U.S. 1 New York, NY 10170 Marc Holliday REIT Total Return Index Year to date, the Dow Jones Wilshire Vornado Realty Trust (VNO) (212) 894-7000 30,009.7 29,936.7 $1,062.5 $3,608.3 $15,530.5 83 Diversified U.S. REIT Index is up 6%, while broad 888 Seventh Ave. www.vno.com +11.8% equity market averages are down 12%. 2 New York, NY 10019 Steven Roth

Mack-Cali Realty Corp. (CLI) (732) 590-1000 16,775.5 16,775.5 $293.9 $807.1 $2,748.6 128 Office 343 Thornall St. www.mack-cali.com +1.2% 3 Edison, NJ 08837 Mitchell E. Hersh

Simon Property Group Inc. (SPG) (317) 636-1600 9,260.3 9,270.8 $1,691.9 $3,677.5 $21,785.2 9 Regional 225 W. Washington St. www.simon.com +10.1% mall 4 Indianapolis, IN 46204 David E. Simon

AMB Property Corp. (AMB) (415) 394-9000 8,045.3 8,045.3 $365.5 $823.8 $4,829.4 26 Industrial Pier 1, Bay 1 www.amb.com +22.7% 5 San Francisco, CA 94111 Hamid R. Moghadam

AvalonBay Communities Inc. (AVB) (703) 329-6300 6,122.7 6,122.7 $368.1 $812.0 $8,053.2 21 Multifamily 2900 Eisenhower Ave. www.avalonbay.com +14.9% 6 Alexandria, VA 22314 Bryce Blair

Kimco Realty Corp. (KIM) (516) 869-9000 6,074.2 5,930.2 $669.8 $978.0 $9,288.9 72 Shopping 3333 New Hyde Park Road www.kimcorealty.com +23.1% center source: dow jones wilshire 7 New Hyde Park, NY 11042 Milton Cooper

Boston Properties Inc. (BXP) (617) 236-3300 5,544.3 5,526.1 $663.6 $1,487.2 $12,259.5 8 Office 800 Boylston St. www.bostonproperties.com +11.8% 8 Boston, MA 02199 Edward H. Linde

Equity Residential (EQR) (312) 474-1300 4,359.7 4,359.7 $752.4 $2,058.6 $12,354.3 16 Multifamily 2 N. Riverside Plaza www.equityresidential.com -0.6% 627 9 Chicago, IL 60606 David J. Neithercut Number of properties owned in the New York Home Properties Inc. (HME) (585) 546-4900 3,555.0 3,555.0 $151.1 $505.2 $1,798.4 22 Multifamily area in 2008 by the top 850 Clinton Square www.homeproperties.com +2.7% 10 Rochester, NY 14604 Edward J. Pettinella 25 REITs

ProLogis (PLD) (303) 567-5000 3,349.5 3,349.5 $1,198.9 $6,352.2 $12,924.2 21 Industrial 4545 Airport Way www.prologis.com +20.1% 11 Denver, CO 80239 Jeffrey H. Schwartz Top Five in 2007 Funds from Operations Apartment Investment and Management Co. (303) 757-8101 3,209.4 3,210.3 $389.6 $1,782.8 $3,343.4 34 Multifamily (AIV) www.aimco.com +2.3% Of the top 25 New York REITs, retail 12 4582 S. Ulster Street Parkway Terry Considine trust Simon Property Group once Denver, CO 80237 again led the best performers, with more than $1.7 billion in FFO. Alexander’s Inc. (ALX) (201) 587-8541 2,933.0 2,933.0 $136.3 $235.3 $1,986.8 6 Regional Figures are in millions. 210 Route 4 East www.alx-inc.com -356.0% mall 13 Paramus, NJ 07652 Steven Roth

Acadia Realty Trust (AKR) (914) 288-8100 2,668.8 1,902.6 $40.4 $108.2 $797.5 26 Shopping 1311 Mamaroneck Ave. www.acadiarealty.com +0.4% center 14 White Plains, NY 10605 Kenneth F. Bernstein

General Growth Properties Inc. (GGP) (312) 960-5000 2,326.9 2,326.9 $1,100.8 $3,283.2 $7,365.5 3 Regional 110 N. Wacker Drive www.ggp.com +22.0% mall 15 Chicago, IL 60606 John L. Bucksbaum

Public Storage Inc. (PSA) (818) 244-8080 2,148.4 2,148.4 $1,148.0 $1,831.8 $14,845.5 50 Self-storage 701 Western Ave. www.publicstorage.com +40.5% 16 Glendale, CA 91201 Ronald L. Havner Jr.

Taubman Centers Inc. (TCO) (248) 258-6800 1,340.0 1,340.0 $235.1 $670.2 $2,640.4 1 Regional 200 E. Long Lake Road www.taubman.com +11.7% mall 17 Bloomfield Hills, MI 48303 Robert S. Taubman bekka lindström bekka Continued

30 | Crain’s New York Business | September 15, 2008 Project5 5/6/08 4:56 PM Page 1

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SLG-1689 Corporate Ad 2008 Crains 10.87 x 14.5.indd 1 5/5/08 5:31:36 PM CNYB 09-15-08 A 32 9/11/2008 6:38 PM Page 1

REPORT REAL ESTATE

2007 2008 2007 funds from NY area NY area operations 2007 Equity NY area Phone/Web site/ sq. ft. owned sq. ft. owned (in millions)/ revenues market cap properties Rank Company/Ticker symbol Chief executive (in thousands)1 (in thousands)2 % change3 (in millions)4 (in millions)5 owned6 Property focus

Glimcher Realty Trust (GRT) (614) 621-9000 1,304.7 1,295.5 $55.4 $303.9 $384.8 1 Regional 180 E. Broad St. www.glimcher.com -317.2% mall Per-Share Growth in Funds 18 Columbus, OH 43215 Michael P. Glimcher From Operations Office REITs are currently experienc- Urstadt Biddle Properties Inc. (UBA) (203) 863-8200 1,284.4 1,258.9 $37.1 $82.4 $463.8 16 Shopping 321 Railroad Ave. www.ubproperties.com +28.5% center ing their lowest level of growth since 19 Greenwich, CT 06830 Charles J. Urstadt 2006, with a -0.79% FFO per share growth. Industrial REITs continue their five-year trend of positive FFO Federal Realty Investment Trust (FRT) (301) 998-8100 1,215.0 1,215.0 $206.0 $488.2 $4,490.4 6 Shopping per share growth. 1626 E. Jefferson St. www.federalrealty.com +7.6% center 20 Rockville, MD 20852 Donald C. Wood

Macerich Co. (MAC) (310) 394-6000 961.6 961.6 $407.9 $820.6 $4,547.9 1 Regional 401 Wilshire Blvd. www.macerich.com +6.5% mall 21 Santa Monica, CA 90401 Arthur M. Coppola

First Real Estate Investment Trust (201) 488-6400 951.6 951.6 $9.5 $41.4 $161.0 12 Diversified of New Jersey (FREVS) — +12.9% 22 505 Main St. Robert S. Hekemian Sr. Hackensack, NJ 07601

Entertainment Properties Trust (EPR) (816) 472-1700 844.8 836.8 $113.7 $237.3 $1,805.5 2 Specialty 30 W. Pershing Road www.eprkc.com +12.6% 23 Kansas City, MO 64108 David M. Brain

BioMed Realty Trust Inc. (BMR) (858) 485-9840 751.6 751.6 $130.3 $266.2 $1,917.1 1 Office 17190 Bernardo Center Drive www.biomedrealty.com +27.2% 24 San Diego, CA 92128 Alan D. Gold

Tanger Factory Outlet Centers Inc. (SKT) (336) 292-3010 729.3 729.3 $99.3 $230.2 $1,258.5 1 Other retail 3200 Northline Ave. www.tangeroutlet.com +12.0% 25 Greensboro, NC 27408 Stanley K. Tanger source: snl financial bekka lindström bekka Source: SNL Financial, Charlottesville, Va., (434) 977-1600, www.snl.com/real_estate; additional research by Denise Southwood, Maia Blume and Sarah Studley New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. To qualify for this list, a company must be a publicly traded REIT that owns commercial property in the New York area. Mortgage REITs, hotel-focused REITs and other companies that own only hotels are not included. Property count and square footage reported include properties with both majority- and minority-owned equity interest. Square footage has been reported by totalbuilding size and is not adjusted for minority-ownership interest. Revenue figures are for calendar year. Executives may have additional titles. 1-As of Aug. 4. Average size for multifamily units has been estimated at 900 square feet. 2-As of Dec. 31. Average size for multifamily units has been estimated at 900 square feet. 3-As of Dec. 31. 4-Figures have not been adjusted for discontinued operations in 2007. 5-As of market close on Aug. 8. 6-As of Aug. 4.

ALL CRAIN’S BUSINESS LISTS ARE AVAILABLE AT WWW.NEWYORKBUSINESS.COM/LISTS.2x6 Thompson.ai 9/10/08 4:13:37 PM

Meet NYC Comptroller WILLIAM THOMPSON

With the New York economy sliding and the outlook for the city budget worsening by the day, come hear comptroller William Thompson tackle the questions of what needs to be done. He’ll be questioned by Crain’s editor Greg David and another journalist on a wide range of issues in expectation of his announcement that he is a candidate for mayor.

DATE: TUESDAY, OCTOBER 21, 2008 TIME: 8:00-8:30A.M. NETWORKING BREAKFAST 8:30-9:30 A.M. PROGRAM VENUE: HILTON NEW YORK 1335 Avenue of the Americas between 53rd and 54th Streets

COST TO ATTEND: $70 for individual tickets if prepaid by October 14; $75 thereafter. $650 for tables of ten if prepaid by October 14; $750 thereafter.

To register go to crainsnewyork.com, or fax your business card and credit card information to “Thompson Breakfast” at 212-210-0499

32 | Crain’s New York Business | September 15, 2008 Project9 9/8/08 4:27 PM Page 1

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DATA BANDWIDTH T-1’s As Low As $319/mo. PUBLIC & LEGAL NOTICES Receive Up To 12 Carrier Quotes Notice of Qualification of Paulson Access Notice of Qualification of Cyrus Access Notice of Qualification of Selectinvest NOTICE OF FORMATION OF LIMITED LIA- Quick Installs In Most Cases II LLC. Authority filed with NY Dept. of LLC. Authority filed with NY Dept. of State MultiStrategy Enhanced LP. Authority filed BILITY COMPANY. NAME: STUDIO 814 Call Yosef Rabinowitz at State on 9/2/08. Office location: NY on 9/2/08. Office location: NY County. with Secy. of State of NY (SSNY) on LLC. Articles of Organization were filed County. Principal business addr.: 225 Principal business addr.: 225 Liberty St., TBRC Cost Recovery, LLC 07/30/08. Office location: New York with the Secretary of State of New York Liberty St., 7th Fl., NY, NY 10281. LLC 7th Fl., NY, NY 10281. LLC formed in DE County. LP formed in Delaware (DE) on (SSNY) on 04/17/08. Office Location: NY 212-644-9000 x327 formed in DE on 11/25/03. NY Sec. of on 9/12/01. NY Sec. of State designated as 07/09/08. Principal office of LP: 30 County. SSNY designated as agent of the State designated as agent of LLC upon agent of LLC upon whom process against Rockefeller Plaza, Suite 2800, New York, LLC upon whom process against it may whom process against it may be served it may be served and shall mail process to: NY 10112. SSNY designated as agent of be served. SSNY shall mail process to the and shall mail process to: CT Corporation CT Corporation System, 111 8th Ave., NY, LP upon whom process against it may be LLC, 814 Broadway, 4th Floor, NY, NY, REAL ESTATE System, 111 8th Ave., NY, NY 10011, NY 10011, regd. agt. upon whom process served. SSNY shall mail process to: c/o 10003. Purpose: Any lawful act. regd. agt. upon whom process may be may be served. DE addr. of LLC: c/o The UBPAM (GP) LLC, Attn: David G. Logan, AUCTION served. DE addr. of LLC: c/o The Corporation Trust Co., 1209 Orange St., 30 Rockefeller Plaza, Suite 2800, New Notice of Formation of PILOT NYC, LLC, a Corporation Trust Co., 1209 Orange St., Wilmington, DE 19801. Arts. of Org. filed York, NY 10112, registered agent upon domestic LLC. Arts. of Org. filed with the BANKRUPTCY AUCTION Wilmington, DE 19801. Arts. of Org. filed with DE Sec. of State, PO Box 898, Dover, whom process may be served. Arts. of SSNY on 07/18/08. Office location: NY UNITED STATES BANKRUPTCY COURT, SOUTHERN DISTRICT OF NEW YORK County. SSNY has been designated as Re: DB DONUTS INC., DB DONUTS, II INC., DB DONUTS, IV INC., DB DONUTS, with DE Sec. of State, PO Box 898, Dover, DE 19903. Purpose: any lawful activity. Org. filed with Harriet Smith Windsor, VI INC., URBAN CITY DOUGH, INC., BARTHOLOMEW FOODS IV CORP. DE 19903. Purpose: any lawful activity. Secretary of State of the State of agent upon whom process against the Case Nos. 08-11703 AJG, 08-11702 AJG, 08-11704 AJG, 08-11705-AJG, 08-12250 AJG, 08-12249 AJG Notice of Qualification of Halcyon Access LLC may be served. SSNY shall mail a (5) FULLY OPERATING Delaware, Division of Corporations, John Notice of Qualification of Renaissance III LLC. Authority filed with NY Dept. of G. Townsend Bldg., Federal & Duke of copy of process to: 45 West 45th St. 6th DUNKIN DONUTS FRANCHISES Futures Fund Access LLC. Authority filed State on 9/2/08. Office location: NY Fl, NY, NY 10036, which is also its princi- LONG TERM/UNDER-MARKET LEASES York Streets, Dover, DE 19901. Purpose: with NY Dept. of State on 9/3/08. Office County. Principal business addr.: 225 To invest in and/or trade securities and/or pal place of business. Purpose: Any SEALED BIDS DUE: location: NY County. Principal business Liberty St., 7th Fl., NY, NY 10281. LLC other financial instruments. Lawful Purpose. FRIDAY, SEPTEMBER 26 • 4:00 P.M. addr.: 225 Liberty St., 7th Fl., NY, NY formed in DE on 5/10/05. NY Sec. of State (5) PRIME MANHATTAN LOCATIONS 10281. LLC formed in DE on 11/13/07. designated as agent of LLC upon whom Notice of Qualification of STRS Ohio NY Notice of Qualification of Getty Images ROCKEFELLER PLAZA, MIDTOWN & DOWNTOWN NY Sec. of State designated as agent of process against it may be served and shall Real Estate Portfolio, LLC. Authority filed Luxembourg S.a r.l. Authority filed with SOLD INDIVIDUALLY OR IN BULK LLC upon whom process against it may mail process to: CT Corporation System, with Secy. of State of NY (SSNY) on NY Dept. of State on 7/30/08. Office loca- PLEASE VISIT WEB SITE FOR ADD’L INFO be served and shall mail process to: CT 111 8th Ave., NY, NY 10011, regd. agt. tion: NY County. LLC formed in The Grand TERMS: FOR EACH LOCATION, A $100,000.00 DEP. IN CERT. FUNDS IS REQUIRED TO BID 08/11/08. Office location: New York RICHARD E. O’CONNELL, ESQ., CHAPTER 7 TRUSTEE Corporation System, 111 8th Ave., NY, NY upon whom process may be served. DE County. LLC formed in Delaware (DE) on Duchy of Luxembourg on 6/20/08. NY DAVID R. MALTZ AUCTIONEER, DCA #762794 10011, regd. agt. upon whom process addr. of LLC: c/o The Corporation Trust 08/07/08. Principal office of LLC: 275 E. Sec. of State designated as agent of LLC RICHARD B. MALTZ, LICENSED REAL ESTATE BROKER may be served. DE addr. of LLC: c/o The Co., 1209 Orange St., Wilmington, DE upon whom process against it may be (516) 349-7022•www.MaltzAuctions.com Broad Street, Columbus, OH 43215. SSNY Corporation Trust Co., 1209 Orange St., 19801. Arts. of Org. filed with DE Sec. of designated as agent of LLC upon whom served and shall mail process to: CT Wilmington, DE 19801. Arts. of Org. filed State, PO Box 898, Dover, DE 19903. process against it may be served. SSNY Corporation System, 111 8th Ave., NY, NY LUXURY PROPERTIES with DE Sec. of State, PO Box 898, Dover, Purpose: any lawful activity. shall mail process to c/o Corporation 10011, regd. agt. upon whom process DE 19903. Purpose: any lawful activity. Service Company, 80 State Street, Albany, may be served. Luxembourg addr. of LLC: TRUMP TOWERS MIAMI Notice of Qualification of Landmark Value NY 12207. Arts. of Org. filed with Delaware 8-10 rue Mathias Hardt, L-1030 Best Investment on Ocean Notice of Formation of 119 Development Access LLC. Authority filed with NY Dept. Secretary of State, Division of Luxembourg, Grand Duchy of LLC. Arts. of Org. filed with Secy. of State of State on 9/2/08. Office location: NY Corporations, John G. Townsend Bldg, 401 Luxembourg. Arts. of Org. filed with Trade Deal Directly w/Developers of NY (SSNY) on 5/29/2002. Office loca- County. Principal business addr.: 225 and Companies Registrar, Centre adminis- Call Elena +1-305-213-3606 Federal Street, Dover, DE 19901. Purpose: tion: NY County. SSNY designated as Liberty St., 7th Fl., NY, NY 10281. LLC Any lawful activity. tratif Pierre Werner, Batiment F, 13, rue agent of LLC upon whom process against formed in DE on 9/16/05. NY Sec. of State Erasme, Luxembourg-Kirchberg, it may be served. SSNY shall mail process designated as agent of LLC upon whom Notice of Qualification of SCOA Luxembourg. Purpose: any lawful activity. to: The LLC, c/o K & R Realty process against it may be served and Residential, LLC. Authority filed with NY TELEPHONE EQUIPMENT Management, Inc., 207 E. 94th St., NY, shall mail process to: CT Corporation Dept. of State on 8/7/08. Office location: Notice of Formation of RT BOOKS LLC. System, 111 8th Ave., NY, NY 10011, Arts. of Org. filed with Secy. of State of WILL BUY ALL NY 10128. Term: until 12/31/2052. NY County. Principal business addr.: 600 Purpose: any lawful activity. regd. agt. upon whom process may be 3rd Ave., NY, NY 10016. LLC formed in DE N.Y. (SSNY) on 5/13/08. Office location: OFFICE TELEPHONE EQUIPMENT served. DE addr. of LLC: c/o The NY County. SSNY designated as agent of Please Call: 212-Richard. on 9/22/98. NY Sec. of State designated as MIRAVOS LLC, a domestic Limited Corporation Trust Co., 1209 Orange St., LLC upon whom process against it may Please Call: 212-742-4273 agent of LLC upon whom process against Liability Company (LLC) filed with the Sec Wilmington, DE 19801. Arts. of Org. filed it may be served and shall mail process to: be served. SSNY shall mail process to: of State of NY on 7-7-08. NY Office loca- with DE Sec. of State, PO Box 898, Dover, c/o CT Corporation System, 111 8th Ave., The LLC, c/o Maurice Kassimir & Assoc., tion: New York County. SSNY is designat- DE 19903. Purpose: any lawful activity. NY, NY 10011, regd. agt. upon whom 1065 Ave. of the Americas, 10th Fl., NY, PUBLIC & LEGAL ed as agent upon whom process against process may be served. DE addr. of LLC: NY 10018. Purpose: any lawful activity. Name: JDY HOME, LLC Art. Of Org. Filed the LLC may be served. SSNY shall mail 1209 Orange St., Wilmington, DE 19801. NOTICES Sec. Of State of NY 7/9/08. Off. Loc.: New NOTICE OF FORMATION OF LIMITED LIA- a copy of any process against the LLC Arts. of Org. filed with DE Sec. of State, BILITY COMPANY. The name of the limited served upon him/her to Maud Maron/ the York Co. SSNY designated as agent upon Townsend Bldg., Dover, DE 19901. Notice of Qualification of CWCapital EY whom process against it may be served. liability company is Anne Bezamat LLC REIT Greenwich LLC. Authority filed with LLC, 682 Broadway, 8D, NY, NY 10012. Purpose: any lawful activity. (“LLC”). LLC’s Articles of Organization was General purposes. SSNY to mail copy of process to THE LLC, Secy. of State of NY (SSNY) on 07/23/08. 295 5th Avenue., Ste. 1616, NY, NY Notice of Formation of Synergy Dental filed with NYS Dept of State on 9/4/08. Office location: New York County. LLC LLC’s office is located in NY County. NYS Notice of Formation of NGM NEW YORK 10016. Purpose: Any lawful act or activity. Management, LLC. Arts. of Org. filed with formed in Delaware (DE) on 12/04/07. Secretary of State (“SOS”) has been des- LLC. Arts. of Org. filed with Secy. of State Secy. of State of NY (SSNY) on 08/19/08. SSNY designated as agent of LLC upon ignated LLC’s agent upon whom process of N.Y. (SSNY) on June 18, 2008. Office Notice of Formation of FREE OUR Office location: New York County. whom process against it may be served. against LLC may be served and SOS shall location: New York County. SSNY desig- CHILDREN THE FILM LLC. Arts. of Org. Principal office of LLC: 18 East 50th SSNY shall mail process to: c/o mail a copy of any process against LLC nated as agent of LLC upon whom filed with Secy. of State of NY (SSNY) Corporation Service Company, 80 State Street, 8th Floor, New York, NY 10022. served upon SOS to LLC, c/o Anne process against it may be served. SSNY on 8/7/08. Office location: NY County. Street, Albany, NY 12207, registered agent SSNY designated as agent of LLC upon Bezamat, 885 Park Ave, NY, NY10021. LLC’s shall mail process to: c/o Insight NYC SSNY designated as agent of LLC upon upon whom process may be served. whom process against it may be served. purpose is to engage in any lawful act. LLC, 206 Front Street, Ste. 1B, Brooklyn, whom process against it may be SSNY shall mail process to the LLC at the Principal office of LLC: 1540 Broadway, served. SSNY shall mail process to: 23rd Floor, New York, NY 10036. Arts. of NY 11201, Attn: Hubertus Fiedler. address of its principal office. Purpose: Notice of Qualification of Maximus Purpose: any lawful activity. 215 W. 101st St., #3C, NY, NY 10025. Any lawful activity. Multimedia International LLC. Authority Org. filed with SOS, DE, Division of Purpose: any lawful activity. Corporations, John G. Townsend Bldg., filed with NY Dept. of State on 8/19/08. Notice of Qualification of SOUND POINT Notice of Formation of The Artifice Group 401 Federal Street, Suite 4, Dover, DE F & F 88 LLC, a domestic Limited Liability Office location: NY County. LLC formed in OPPORTUNITIES GP, LLC. Authority filed LLC. Arts. of Org. filed with NY Dept. of 19901. Purpose: Any lawful activity. Company (LLC) filed with the Sec of State NV on 4/23/08. NY Sec. of State designat- with Secy. of State of NY (SSNY) on State on 5/12/08. Office location: NY of NY on 3-20-08. NY Office location: New ed as agent of LLC upon whom process 08/20/08. Office location: New York County. Sec. of State designated as agent Notice of Qualification of GS Mount Kellett York County. SSNY is designated as against it may be served and shall mail County. LLC formed in Delaware (DE) on of LLC upon whom process against it may Capital Partners Access Fund, L.P. agent upon whom process against the process to: c/o CT Corporation System, 07/31/08. Principal office of LLC: 623 be served and shall mail process to the Authority filed with Secy. of State of N.Y. LLC may be served. SSNY shall mail a 111 8th Ave., NY, NY 10011, regd. agt. (SSNY) on 7/25/08. Office location: NY Fifth Avenue, New York, NY 10022. SSNY principal business address: 236 E. 13th St., copy of any process against the LLC upon whom process may be served. County. LP formed in Delaware (DE) on designated as agent of LLC upon whom #25, NY, NY 10003. Purpose: any lawful served upon him/her to Frederic Kantor & Principal office addr.: 1520 W. Altorfer Dr., 7/17/08. SSNY designated as agent of LP process against it may be served. SSNY purpose. Peoria, IL 61615. Arts. of Org. filed with Co., P.C., 45 W. 36th St., 7th Fl., NY, NY upon whom process against it may be shall mail process to Stephen J. Ketchum, NV Sec. of State, 202 N. Carson St., 10018. General purposes. served. SSNY shall mail process to: 85 623 Fifth Avenue, New York, NY 10022. Notice of Formation of Creare, LLC. Arts. Carson City, NV. Purpose: any lawful activity. Arts. of Org. filed with Delaware Secretary of Org. filed with Secy. of State of N.Y. Broad St., NY, NY 10004. DE address of Notice of Formation of Devil’s Playground, of State, Corporations Division, First and (SSNY) on June 19, 2008. Office location: Notice of Formation of SOUTH BEDFORD LP: 2711 Centerville Rd., Ste. 400, LLC. Arts Of Org. filed with Secy. of State Federal Street, Wilmington, DE 19801. New York County. SSNY designated as ORAL & MAXILLOFACIAL SURGERY Wilmington, DE 19808. Name/address of N.Y. (SSNY) on 07/11/2008. Office loca- Purpose: Any lawful activity. agent of LLC upon whom process against PLLC, a Professional LLC. Arts. of Org. each genl. ptr. available from SSNY. Cert. tion: New York County. SSNY designated it may be served. SSNY shall mail process filed with the SSNY on 05/16/08. Office of LP filed with DE Secy. of State, as agent of LLC upon whom process Name of Foreign LLC: UHURU CAPITAL to: The LLC, Rottenberg Lipman Rich, location: NY County, the county was Townsend Bldg., Dover, DE 19901. against it may be served. SSNY shall mail MANAGEMENT LLC. App. for Auth. filed P.C., 369 Lexington Avenue, New York, NY amended to Westchester on 08/25/08. Purpose: any lawful activity. process to:c/o Cohen & Sprung, LLC, NY Dept. of State: 5/8/08. Jurisd. and date 10017. Purpose: any lawful activity. SSNY has been designated as agent upon Notice of Qualification of CRESTVIEW of org.: DE 3/12/08. County off. loc.: New 1250 Union Turnpike, New Hyde Park, NY whom process against it may be served. PARTNERS II (FF CAYMAN), L.P. Authority York County. Princ. bus. loc.: 1350 11040. Purpose: any lawful activity. Notice of Qualification of York Access LLC. SSNY shall mail a copy of process to: filed with Secy. of State of NY (SSNY) on Avenue of the Americas, New York, NY Authority filed with NY Dept. of State on Jason Baker, 81 Pheasant Run, Millwood, 07/24/08. Office location: New York 10019. Sec. of State designated as agent Notice of Qualification of Exquisite 9/2/08. Office location: NY County. NY 10546. Purpose: To Practice The County. LP formed in Cayman Islands on of foreign LLC upon whom process Planning, LLC. Authority filed with NY Principal business addr.: 225 Liberty St., Profession Of Dentistry. 11/08/07. SSNY designated as agent of LP against it may be served. The Sec. of Dept. of State on 11/7/07. Office location: 7th Fl., NY, NY 10281. LLC formed in DE upon whom process against it may be State shall mail copy of process to: 10 NY County. LLC formed in DE on on 9/12/01. NY Sec. of State designated as Notice of Formation of ZIBBY’S PREP served. SSNY shall mail process to: c/o CT East 40th Street, 10th Floor, New York, NY 10/31/07. NY Sec. of State designated as agent of LLC upon whom process against LLC. Arts of Org. filed with Secy. of Corporation System, 111 Eighth Avenue, 10016, Attn: National Corporate Research, agent of LLC upon whom process against it may be served and shall mail process to: State of N.Y. (SSNY) on 8/21/08. Office New York, NY 10011, registered agent Ltd. Addr. of foreign LLC in DE is: 615 it may be served and shall mail process to CT Corporation System, 111 8th Ave., NY, location: New York County. SSNY des- upon whom process may be served. Arts. South DuPont Hwy., Dover, DE 19901. the principal business address: 2306 NY 10011, regd. agt. upon whom process ignated as agent of LLC upon whom of Org. filed with Registrar of Exempted Auth. officer in DE where Cert. of Form. Dabis Ct., Edgewater, NJ 07020. DE addr. may be served. DE addr. of LLC: c/o The process against it may be served. SSNY Limited Partnerships, Ground Floor, Citrus filed: Harriet Smith Windsor, Sec. of State, of LLC: 615 S. Dupont Hwy., Dover, DE Corporation Trust Co., 1209 Orange St., shall mail process to principal business Grove Building, Goring Avenue, George Div. of Corporations, John G. Townsend 19901. Arts. of Org. filed with DE Sec. of Wilmington, DE 19801. Arts. of Org. filed location: 137 E 36 St., Apt. 23C, NY, NY Town, Grand Cayman, Cayman Islands. Bldg., 401 Federal Street, Suite 4, Dover, State, 401 Federal St., Dover, DE 19901. with DE Sec. of State, PO Box 898, Dover, 10016. Purpose: Any lawful activity. Purpose: Any lawful activity. DE 19901. Purpose: any lawful activity. Purpose: any lawful activity. DE 19903. Purpose: any lawful activity. 1078884 w.o

34 | Crain’s New York Business | September 15, 2008 nb37p34-36cls.qxp 9/11/08 2:59 PM Page 35

PUBLIC & LEGAL NOTICES

Notice of Qualification of W2007 245 Fifth NOTICE OF QUALIFICATION OF 65TH Notice of Qualification of CRESTVIEW NOTICE OF FORMATION of Micro Office Notice of Qualification of BRULANT, LLC. Mezz Seller, LLC. Authority filed with PLACE, LLC. Application for Authority OFFSHORE HOLDINGS II (CAYMAN), L.P. Solutions 4 LLC. Arts. Of Org. filed with Authority filed with Secy. of State of NY Secy. of State of NY (SSNY) on 6/23/08. filed with the Secretary of State of New Authority filed with Secy. of State of NY Secy. Of State of N.Y. (SSNY) on 5/8/06. (SSNY) on 7/15/08. Office location: NY Office location: NY County. Princ. bus. York on June 12, 2008. N.Y. Office (SSNY) on 07/23/08. Office location: New Office location: New York County. SSNY County. LLC formed in Delaware (DE) on loc.: 85 Broad St., NY, NY 10004. LLC Location: New York County. LLC formed York County. LP formed in Cayman Islands designated as agent of LLC upon whom 6/12/08. SSNY designated as agent of formed in Delaware (DE) on 2/29/08. in Nevada on April 8, 2008. SSNY has on 10/26/07. SSNY designated as agent of process against it may be served. SSNY LLC upon whom process against it may SSNY designated as agent of LLC upon been designated as agent of LLC upon LP upon whom process against it may be shall mail process to: 122 West 27th Street, be served. SSNY shall mail process to whom process against it may be served. process against it may be served. The served. SSNY shall mail process to: c/o CT 10th Fl., NY, NY 10001. Principal business princ. bus. loc.: c/o Rosetta LLC, 100 SSNY shall mail process to: c/o CT P.O. address to which the SSNY shall mail Corporation System, 111 Eighth Avenue, location: 122 West 27th Street, 10th Fl., NY, American Metro Blvd., Ste. 201, Hamilton, Corporation System, 111 8th Ave., 13th a copy of any process against the LLC New York, NY 10011, registered agent NY 10001. Purpose: Any lawful activity. NJ 08609, Attn: Kurt Holstein. DE address Fl., NY, NY 10011. DE address of LLC: c/o served upon him is C/O the LLC: upon whom process may be served. Arts. of LLC: 2711 Centerville Rd., Ste. 400, The Corporation Trust Co., 1209 Orange Salvatore Favia; 6933 Exeter Street, Forest of Org. filed with Registrar of Exempted Notice of Formation of Pure Element Wilmington, DE 19808. Arts. of Org. filed St., Wilmington, DE 19801. Arts. of Org. Hills, NY 11375. A copy of the Articles of Limited Partnerships, Ground Floor, Citrus Apparel LLC, Art. of Org. filed Sec’y of with DE Secy. of State, Loockerman & filed with DE Secy. of State, 401 Federal Organization with all amendments thereto Grove Building, Goring Avenue, George State (SSNY) 6/18/08. Office location: NY Federal Sts., Dover, DE 19901. Purpose: St., Ste. 4, Dover, DE 19901. Purpose: shall be provided upon request. Such Town, Grand Cayman, Cayman Islands. County. SSNY designated as agent of LLC any lawful activity. any lawful activity. request should be sent to Salvatore Favia Purpose: Any lawful activity. upon whom process against it may be at the above address. The Principal served. SSNY shall mail copy of process Amalgamated Life Insurance Notice of Formation of Three Eyed Labs, Business Address of the LLC is: 1645 Notice of Formation of Bayrock/Jackson to 32 W. 33rd St., NY, NY 10001. Company is committed to LLC. Arts. of Org. filed with Secy. of State Village Center Circle, Ste. 170, Las Vegas, Jamaica LLC. Arts. of Org. filed with Secy. Purpose: any lawful activities. of NY (SSNY) on 08/04/08. Office location: NV 89134. Purpose of LLC: Real Estate. of State of N.Y. (SSNY) on 8/15/08. Office preventing fraud in regard to the New York County. Principal office of LLC: location: NY County. SSNY designated as Notice of Formation of 362 Casanova insurance coverage it issues. 309 West 99th Street, #5C, New York, NY NOTICE OF FORMATION OF REGISTERED agent of LLC upon whom process against Street, LLC. Arts. of Org. filed with Secy. Therefore, Amalgamated Life, 10025. SSNY designated as agent of LLC LIMITED LIABILITY PARTNERSHIP. it may be served. SSNY shall mail process of State of NY (SSNY) on 7/16/08. Office upon whom process against it may be NAME: DICKLER AND ROTH, LLP. to: c/o Bayrock Real Estate Partners LLC, location: NY Co. SSNY designated as as required by the New York served. SSNY shall mail process to: Brian Certificate of Registration was filed with 725 Fifth Ave., 24th Fl., NY, NY 10022. agent of LLC upon whom process against State Insurance Department the Secretary of State of New York Chirls, 309 West 99th Street, #5C, New York, Purpose: any lawful activity. it may be served. SSNY shall mail process makes the following statement: NY 10025. Purpose: Any lawful activity. (SSNY) on 08/01/08. Office location: New to: The LLC, 1536 Third Ave., 3rd Fl., NY, York County. SSNY has been designated NOTICE OF FORMATION OF LIMITED LIA- NY 10028. Purpose: any lawful activities. Any person who knowingly and Notice of Formation of Elmer Smathers, as agent of the LLP upon whom process BILITY COMPANY. NAME: LAND ZONE LLC. Arts. of Org. filed with NY Dept. of against it may be served. SSNY shall mail LLC. Articles of Organization were filed Notice of Formation of FIFTH ON THE with intent to defraud any State on 7/25/08. Office location: NY a copy of process to the LLP, 19 Fulton with the Secretary of State of New York PARK LLC. Arts. of Org. filed with Secy. of insurance company or other County. Principal business addr.: c/o Street, Suite 402, New York, New York (SSNY) on 08/20/08. Office location: New State of N.Y. (SSNY) on 6/10/04. Office person, files an application for Sarah G. Rubin, JPMorgan Chase Bank, 10038, which is also the location of the York County. SSNY has been designated location: NY County. SSNY designated as insurance or statement of claim N.A., 345 Park Ave., NY, NY 10154. Sec. partnership. Purpose: For the practice of as agent of the LLC upon whom process agent of LLC upon whom process against of State designated as agent of LLC upon the profession of Law. against it may be served. SSNY shall mail it may be served. SSNY shall mail process containing any materially false whom process against it may be served a copy of process to the LLC, c/o Berliner to: 37 W. 65th St., 2nd Fl., NY, NY 10023. Notice of Qualification of 73-77 West information, or conceals for and shall mail process to: CT Corporation & Pilson, Esqs., 80 Cutter Mill Road, Suite Purpose: any lawful activity. the purpose of misleading, System, 111 8th Ave., NY, NY 10011. 132nd Street Holdings, LLC. Authority 411, Great Neck, New York 11021. Character: Investment, real estate devel- filed with NY Dept. of State on 8/12/08. Purpose: For any lawful purpose. NOTICE OF QUALIFICATION OF 1870 information concerning any opment and oil and gas development. Office location: NY County. Principal busi- MADISON LLC. Application for Authority factual material there-to, commits ness addr.: 110 E. 59th St., 20th Fl., NY, Notice of Qualification of CRESTVIEW filed with the Secretary of State of New Notice of Formation of PENYEACH 43 NY 10022. LLC formed in DE on 8/7/08. PARTNERS II (CAYMAN), L.P. Authority York on June 12, 2008. N.Y. Office a fraudulent act , which is a LLC. Arts. of Org. filed with Secy. of State NY Sec. of State designated as agent of filed with Secy. of State of NY (SSNY) on Location: New York County. LLC formed crime. They will be subject to of NY (SSNY) on 8/28/2008. Office loca- LLC upon whom process against it may 07/02/08. Office location: New York in Nevada on July 16, 2007. SSNY has a civil penalty not to exceed tion: New York County. SSNY designated be served and shall mail process to: CT County. LP formed in Cayman Islands on been designated as agent of LLC upon as agent of LLC upon whom process Corporation System, 111 8th Ave., NY, NY 10/26/07. SSNY designated as agent of process against it may be served. The five thousand dollars and the against it may be served. SSNY shall mail 10011, regd. agt. upon whom process LP upon whom process against it may be P.O. address to which the SSNY shall mail stated value of the claim for process to the LLC, c/o Elisabeth M. may be served. DE addr. of LLC: 1209 served. SSNY shall mail process to: c/o a copy of any process against the LLC each violation. Kovac, Esq., 90 Park Ave., Ste. 1710, NY, Orange St., Wilmington, DE 19801. Arts. M&C Corporate Services Limited, P.O. served upon him is C/O the LLC: NY 10016. Purpose: Any lawful activity. of Org. filed with DE Sec. of State, 401 Box 309GT, Ugland House, South Church Salvatore Favia; 6933 Exeter Street, Forest Anyone knowing of a fraudulent Federal St., Dover, DE 19901. Purpose: Street, George Town, Grand Cayman, Hills, NY 11375. A copy of the Articles of act should call Mark Schwartz at: Notice of Formation of Payal Arts any lawful activity. Cayman Islands, registered agent upon Organization with all amendments thereto International, LLC. Arts. of Org. filed with whom process may be served. Arts. of shall be provided upon request. Such Amalgamated Life NY Dept. of State on 8/13/08. Office loca- Notice of Formation of TERZETTO LLC, a Org. filed with Registrar of Exempted request should be sent to Salvatore Favia domestic LLC. Arts. of Org. filed with the Insurance Company tion: NY County. Sec. of State designated Limited Partnerships, Ground Floor, Citrus at the above address. The Principal 730 Broadway as agent of LLC upon whom process SSNY on 04/25/08. Office location: NY Grove Building, Goring Avenue, George Business Address of the LLC is: 1645 against it may be served and shall mail County. SSNY has been designated as Town, Grand Cayman, Cayman Islands. Village Center Circle, Ste. 170, Las Vegas, New York, NY 10003 process to: c/o Bharati Parekh, 10 E. Lee agent upon whom process against the Purpose: Any lawful activity. NV 89134. Purpose of LLC: Real Estate. 212-539-5000 St., Unit 809, Baltimore, MD 21202. LLC may be served. SSNY shall mail a Purpose: any lawful activity. copy of process to: 1627 Broadway, NY, REQUEST FOR PROPOSALS NY 10019. Purpose: Any Lawful Purpose. Notice of Formation of a Professional Lincoln Center Development Project, Inc. Advertisement for Bid 09/08/08 Service Limited Liability Company (PLLC) Notice of Formation of J.K. AGENCY LLC. Sealed bids for Lincoln - Center Redevelopment. Package 6B - 65th Street Transportation Improvement Project (TIP) will be received by Name: KB DENTAL PARTNERS, LLC. Articles Arts. of Org. filed with Secy. of State of the Turner Construction Company, 375 Hudson Street - 6th Floor, New York, New York, 10014, on behalf of Lincoln Center Development of Organization filed by the Department of N.Y. (SSNY) on 4/18/08. Office location: Project, Inc. on November 7, 2008. Sealed bids will be publicly opened and read. Each bid must be prepared and submitted in accordance State of New York on: 8/19/2008. Office NY County. SSNY designated as agent of with the Instructions to Bidders and must be accompanied by a bid bond in the amount of 5% of the bid value. location: County of New York. LLC upon whom process against it may Package 6B 65th Street TIP proposes to narrow the West 65th Street roadway, widen the sidewalks along with related lighting, traffic sig- Purpose: Dentistry be served. SSNY shall mail process to: nals, tree planting and utility work. Secretary of State of New York (SSNY) Jeffrey Spielsinger, 226 W. 47th St., 3rd Prospective Bidders are advised of the following Bid Packages: designated as agent of PLLC upon whom Fl., NY, NY 10036. Purpose: any lawful Bid Package # 6B - General Site Construction process against it may be served. SSNY activity. shall mail copy of process to: c/o The scope of work includes: demolition of sidewalks and roadway pavement, existing trees removal, construction of new sidewalks and Englewood Management, LLC, 19 REDBRICK VENTURES LLC Articles of associated finishes, reconstruction of roadway, new footings for “Video” blades, relocation of catch basins and hydrants, new benches, trees Beekman Street, New York, NY 10038 Org. filed NY Sec. of State (SSNY) with associated growing medium and elements, street signals, as well as maintenance and protection of traffic. 7/30/08. Office in NY Co. SSNY desig. Anticipated cost: between and $3.6 M. and $ 4.4 M Notice of Qualification of CWCapital EY agent of LLC upon whom process may be Bid Package # 6B - Electrical REIT UBS LLC. Authority filed with Secy. served. SSNY shall mail copy of process The scope of work includes: demolition of existing and installation of new exterior street lighting fixtures and associated power, bench of State of NY (SSNY) on 07/23/08. Office to 244 Madison Ave., NY, NY 10016, lighting and power, demolition of existing and installation of new traffic signals, “Video” blades power and telecommunication conduits. location: New York County. LLC formed in which is also the principal business loca- Delaware (DE) on 05/05/08. SSNY desig- tion. Purpose: Any lawful purpose. Anticipated cost: between and $ 600 K and $ 800 K nated as agent of LLC upon whom process This project involves phasing and logistical considerations dictated by a fully operational performing arts campus, thus work procedures against it may be served. SSNY shall mail NOTICE OF FORMATION OF LIMITED LIA- will be governed by the Rules and Regulations and supplementary general conditions included in the bidding documents. process to: c/o Corporation Service BILITY COMPANY. NAME: E & M MEDIA The project schedule is February, 2009 through March, 2010. Company, 80 State Street, Albany, NY HOLDINGS, LLC. Articles of Organization All successful bidders will be required to provide a performance bond in the amount of 100% of the bid value and a payment bond as follows: were filed with the Secretary of State of 12207, registered agent upon whom (1) 50% of the contract price if the contract price is not more than $1,000,000 process may be served. Principal office of New York (SSNY) on 08/06/08. Office (2) 40% of the contract price if the contract price is more than $1,000,000 but not more than $5,000,000. LLC: 1540 Broadway, 23rd Floor, New location: New York County. SSNY has York, NY 10036. Arts. of Org. filed with been designated as agent of the LLC upon (3) $2,500,000 if the contract price is more than $5,000,000 SOS, DE, Division of Corporations, John whom process against it may be served. This Contract is subject to the Federal Transit Administration (FTA) requirements, including the Disadvantaged Business Enterprise (DBE) G. Townsend Bldg., 401 Federal Street, SSNY shall mail a copy of process to the requirements. DBE goal is 11%. Suite 4, Dover, DE 19901. Purpose: Any LLC, c/o Michael Medico, c/o Impart Interested bidders are strongly encouraged to submit Vendex applications to the Mayors Office of Contracts as Vendex is a contract requirement. lawful activity. Media Advertising, 462 7th Avenue, 8th There will be an optional Site Walk through and a Pre-Bid Conference, suggested but not mandatory, for all interested bidders to be held at Floor, New York, New York 10018. the field offices of Turner Construction, 175 West 62nd Street (Damrosch Park), New York, NY 10023 on October 06, 2008 from 1:30 pm Notice of Qualification of CWCI Enhanced Purpose: For any lawful purpose. to 3:00 p.m. Yield Capital Partners LLC. Authority filed with Secy. of State of NY (SSNY) on Notice of Qualification of CRESTVIEW OFF- Bid documents will be available beginning on September 29, 2008 at: 07/24/08. Office location: New York SHORE HOLDINGS II (FF CAYMAN), L.P. BPI Reprographics County. LLC formed in Delaware (DE) on Authority filed with Secy. of State of NY 11 Broadway, New York, New York 10004 12/01/06. SSNY designated as agent of (SSNY) on 07/23/08. Office location: New Phone: 212-514-8010 LLC upon whom process against it may York County. LP formed in Cayman Islands Fax: 212-514-8038 be served. SSNY shall mail process to: on 11/08/07. SSNY designated as agent of Attention: Irwin Sherman c/o Corporation Service Company, 80 LP upon whom process against it may be Please call to place an order before pickup. The cost of the bid documents is $75.00 and is refundable in accordance with instructions State Street, Albany, NY 12207, registered served. SSNY shall mail process to: c/o CT included in the bid documents. agent upon whom process may be Corporation System, 111 Eighth Avenue, served. Principal office of LLC: One New York, NY 10011, registered agent Bid Requests for Information (RFIs) shall be submitted in writing prior to the end of business on October 20, 2008 to: Charles River Place , 63 Kendrick Street, upon whom process may be served. Arts. Turner Construction Company Needham, MA 02494. Arts. of Org. filed of Org. filed with Registrar of Exempted 375 Hudson Street, 6th floor with SOS, DE, Division of Corporations, Limited Partnerships, Ground Floor, Citrus New York, NY 10014 John G. Townsend Bldg., 401 Federal Grove Building, Goring Avenue, George Attn: Keith Finerty Street, Suite 4, Dover, DE 19901. Town, Grand Cayman, Cayman Islands. [email protected] Purpose: Any lawful activity. Purpose: Any lawful activity. For Assistance pertaining to this Advertisement, contact Alden Maragoto at 212-229-6457.

September 15, 2008 | Crain’s New York Business | 35 CNYB 09-15-08 A 36 9/11/2008 8:12 PM Page 1

IN THE SPOTLIGHT: Workers at 230 Fifth claim the posh Chic rooftop bar facing nightspot violated state and federal lawsuit over wages, tips labor laws.

laws by “refusing to pay them the The firm filed a similar complaint Hot nightspot 230 proper minimum wage, refusing to in June against the midtown restau- Fifth faces possible pay them proper overtime compen- rant Tao and one in March against sation, and compelling them to par- Buddha Bar NYC, a club in the class-action lawsuit ticipate in a mandatory tip pool.” meatpacking district. The workers also allege that 230 A ruling by the New York Court BY DANIEL MASSEY Fifth kept mandatory service charges of Appeals issued in February held that customers at private parties be- that restaurants must distribute tips the upscale roof bar 230 Fifth is lieved would be paid to workers. to workers if patrons believe that is the latest New York City hot spot “We never received any gratu- who is getting them.According to la-

being sued for allegedly misappro- ities from these parties because cus- bor lawyers,that decision has laid the getty images priating tips and paying workers less tomers felt they had already taken groundwork for the current lawsuits than minimum wage. care of us with the 20% gratuity,” and others that are likely to follow. known until discovery is completed. sual restaurants that serves Peru- A complaint filed in federal court says Carolina Karth, a 27-year-old But, she noted, “We anticipate it vian-style food,has agreed to pay 62 in Manhattan last week charges that bartender who is one of the plain- Raising the stakes could be millions of dollars.” workers $282,713 in back wages to the city’s largest rooftop bar and its tiffs in the suit. “In most cases, we linda neilan,one of Outten’s attor- According to its Web site, 230 resolve a lawsuit filed by the U.S. owner, art collector and entrepre- rarely ever saw any of that money. neys, said the alleged violations at Fifth has hosted such events as a So- Department of Labor. Federal offi- neur Steven Greenberg, have “en- That was a huge problem.That was 230 Fifth date back to the club’s May pranos cast party and the premiere cials had charged Pio Pio with vio- joyed great success at the expense of a great effect on our night.” 2006 opening and that the number of party for The Devil Wears Prada. It lations of minimum wage, overtime their hourly workers”—an expense Outten & Golden, the law firm workers that qualify for the class was also the site of the 2008 Crain’s and record-keeping laws. the plaintiffs’ lawyer says may have that represents the workers, is seek- would easily exceed 100. She said an “40 Under 40” celebration. reached into the millions of dollars. ing class-action status for the suit. exact dollar amount wouldn’t be In a separate case, a group of ca- COMMENT? [email protected] A lawyer for Mr. Greenberg, who once owned the Roxy and Palladium nightclubs and the Gramercy Park Hotel, said she had not yet had a REAL ESTATE AND MORE ON CRAIN’S WEB SITE chance to review the complaint and could therefore not comment on the hottest industries. Go to particular real estate brokerage or specifics. “We do believe that 230 www.crainsnewyork.com/signup. firm. Fifth Avenue has been in full compli- ance with all the state and federal Breaking news E-mail Resources Get easy links minimum wage and hour laws,” said alerts keep you up-to-date to government agencies Carolyn Richmond of Fox Roth- on local industry and industry groups schild. She said that bartenders and developments as they involved in New York real “Subscribe now” button to order the cocktail waitresses at private parties happen. estate. weekly print edition of Crain’s New earn $30 to $50 an hour and bar backs Tuesday e-mail Company alerts Visitors to Back issues Use the and busboys make twice the mini- Sign up for Crain’s York Business as well as digital the Crain’s Web site can archives to find published mum wage. Real Estate Insider, a weekly e-mail subscriptions to the newspaper, the sign up for e-mail alerts Crain’s stories. The suit, brought on behalf of newsletter featuring the latest deals, daily Insider political newsletter and four workers, alleges that the bar events and personnel moves in one of that provide news about a Subscribe Use the the daily Pulse health care newsletter. broke various state and federal labor

PUBLIC & LEGAL NOTICES

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36 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 37 9/11/2008 8:13 PM Page 1

BUSINESS HOME BBQ RESTAURANTS FRONT Smoking Some finding required lower rents it took a while, but serious outside their barbecue, slowly smoked over wood coals, is now widely comfort zone available in New York City. PAGE 39 Here are five spots where you can sample the real thing.

MAINLINING: Judy Gattegno (below right) receives a Botox treatment from plastic surgeon Dr. Yael Halaas.

DINOSAUR BAR-B-QUE opened by John Stage in Syracuse in 1984 and arriving in Harlem in 2004, Dinosaur Bar-B-Que combines a roadhouse vibe with some of the region’s best ’cue.The address is misleading: It’s actually just a block from 125th Street (near the No. 1 subway and Fairway), with plenty of taxis cruising nearby. BEST ITEMS Brisket, pulled pork RESERVATIONS Recommended. 646 W. 131st St. (at 12th Avenue); (212) 694-1777 www.dinosaurbarbque.com

BLUE SMOKE operated by Danny Meyer’s Union Square Hospitality Group, Blue Smoke pioneered wood-smoked barbecue in Manhattan. Under chef Kenny Callaghan’s direction, it has only improved since opening in 2002. Downstairs, the Jazz Standard offers live music (and barbecue from upstairs) nightly. BEST ITEMS St. buck ennis Louis pork BEAUTY IN ribs, beef ribs A NEEDLE RESERVATIONS Brand-name Recommended. injectable facial 116 E. 27th St. (between Park Cosmetic changes plumpers and and Lexington avenues); smoothers: (212) 447-7733 www.bluesmoke.com Tough times call for injectables instead of lifts Botox BY ALIX STRAUSS $400-$1,200 Evolence etermined to erase her brow and smile lines, Judy Gattegno recently faced a tough choice as she sat in the Upper East Side office of $750-$2,000 Juvéderm and plastic surgeon Dr. Yael Halaas. Should she cut or fill? A full face-lift Restylane offered a longer-lasting but expensive solution for those nagging little wrinkles. Injectables like Botox or Restylane would plump and smooth $750-$2,000 at lower cost, but their effects would fade within a year. Radiesse DAISY MAY’S BBQ USA chef adam perry lang, Feeling uncertain because of the frail economy, she chose the latter. $800-$2,400 “As a woman in a competitive workplace, I wanted to stay youthful Cost depends on number of whose background includes syringes injected. Continued on Page 42 and attractive,” says Ms. Gattegno, 51,an See IN TOUGH TIMES on Page 38 Source: Dr. Kenneth Beer items: istockphotos D September 15, 2008 | Crain’s New York Business | 37 CNYB 09-15-08 A 38 9/12/2008 12:15 PM Page 1

BUSINESS LIVES

face didn’t reflect the energy level and youthfulness I felt inside,” Mr. In tough times, the face-lift gets cut Vente says.“I wanted to bring those elements back.” Thirty thousand- Continued from Page 37 signer handbags. fillers and other injectables, allow not permanent,we don’t put you un- plus dollars later, his youthfulness employee in the midtown office of a “People are freaking out about executives to return to the office di- der anesthesia and the side-effects has reappeared. large insurance firm. “Plus, this was their mortgage payments and job rectly after treatment. Additionally, are far less.” Mr. Vente assessed the purchase affordable for me.” safety,” says Dr. Kenneth Beer, a these temporary rejuvenations run Of course, some workers are still and its payoff the way he would any Executives are still getting dermatologist in Palm Beach, Fla., just $2,000 to $4,000, while the tab springing for major overhauls.They other. “Not having unlimited re- makeovers, but with money tighter who says that 80% of his patients are for a face-lift is $20,000 to $50,000. consider it a form of job security. sources, I still feel it was a great in- than a fresh face-lift, those who New York snowbirds. “In tight Dr. Halaas has seen a 20% in- Joe Vente, 58, general manager vestment,” he says. “Europe will al- might have thrown down $40,000 monetary times, people can’t afford crease in her injectables business at a luxury men’s clothier, went for ways be there; I’m glad my sags and for a nip-and-tuck last year are to miss 10 days of work while recov- this year. a complete face- and eye-lift last wrinkles aren’t.” looking for alternatives. And those ering from a face-lift.Unless they’re “People are holding off on big- year. He snipped his budget in oth- who hope that the full monty will the ultra-rich,the trend right now is ticket items like face-lifts because er categories, determining that he Mirror, mirror pay career dividends are cutting for less invasive, less expensive pro- it’s not cost-effective when money is could forgo a European vacation or an account manager who did back on other luxuries like resort cedures,” he says. tight,” she says. “Fillers are popular a new car. not want to be named went under getaways, four-star meals and de- Wonders like lasers, as well as because there’s no down time: it’s “I felt as if the appearance of my the knife for a chin implant and is pleased with her new visage. “I work with 30-year-olds,” says the woman, who is in her 50s. “In my industry, you need every edge possible. I didn’t want to show signs of aging or for people to say, ‘Look, she’s pushing 50.’ ” She asked if I’d like her to set up Because she didn’t want anyone to be the wiser about how she achieved the physical improvement, immediate payments she told just a few friends about the for my exports. operation. “I didn’t want people to know I’d had a chin implant,” she says. “I I barely let her fi nish the sentence. want people to notice that I look good on my own, not with the help of a doctor.” She charged the $13,000 proce- dure to her credit card. “I’m not a rich woman, but I’m really glad I had the work done last year,” she says, adding that her in- come has been cut in half this year as a result of the slumping economy and depressed sales environment. She insists that she has no re- grets—even though she’s still pay- ing off the bill for her surgery. “I don’t care how long that takes,” she says. “It was worth every penny.”

Dinesh Kapoor COMMENTS? [email protected] textiles importer/exporter New York, NY MOOD-LIFT IT’S NO SURPRISE that people are more concerned about their jobs in hard times. “When they’re worried about that, they want to look good and project a vibrant, ener- getic and youthful appear- ance,” says Dr. Andrew A. Jacono, a facial plastic and recon- At HSBC Business Banking, we believe great structive sur- geon in Manhattan whose relationships are built on RAQs (Rarely Asked Questions). business is up 20% this year. Speak with us today and discover what a great relationship can do for “Should they lose their job, they your business. Be ready — your HSBC relationship manager will ask you want to look as if they can com- pete in today’s marketplace,” some RAQs (Rarely Asked Questions) to understand what makes your he says. business tick. Backed by 140 years of strength and stability, we’ll tailor the People are also more right solutions to support your success. Visit a branch or call 1-866-427-2060 inclined to feel depressed in a to talk to a Business Banking relationship manager. us.hsbc.com/relationship poor economy, and studies show that improving one’s appear- ance heightens mood, “which would make you more produc- tive at work,” Dr. Jacono says. In the United States, banking products are offered by HSBC Bank USA, N.A. or HSBC National Bank USA. Both banks Member FDIC. ©2008 HSBC Bank USA, N.A. istockphoto

38 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 39 9/11/2008 3:04 PM Page 1

BUSINESS LIVES HOME FRONT Effort, luck yield a few bargains for adventurous Rents down in some Mr. Muir says. He also loves the various estimates, some neighbor- rent. One-bedrooms in Bedford hoods below 125th Street have seen off-the-beaten-track Park start at about $550. Mr. Muir rents go down slightly, agents and pays $825 a month for his 500- apartment hunters report. FULL CIRCLE: Sean Muir areas vs. last year, square-foot walk-up, which is just a According to The Real Estate looked for a better spot few blocks from the New York Group’s August 2008 Manhattan but got the best deal even in Manhattan Botanical Garden.It’s 30 minutes to Rental Market Report, average rents back in Bedford Park.

midtown on the D and No. 4 trains, for nondoorman studios on the Up- buck ennis or 20 minutes on Metro-North. per West Side fell by $165 from the BY MARGARET JAWORSKI “It’s the best place in the city to month before, to $2,377. Doorman er districts. For example, two-bed- sites as Craigslist and hotpads.com. live that no one has ever heard of,” studios in the East Village were down rooms in his neighborhood average Tiffany Iwankiw, 24, and her n july, Sean Muir, 25, signed he says. $275, to $2,780. Doorman one-bed- $1,500, but Park Slope rents are roommate scored their fifth-floor a two-year lease for a one- rooms on the Lower East Side double that, Mr. Tammaro says. walk-up on East 75th Street on bedroom in Bedford Park, a Like true love slipped to $3,524 from their 13- Sunset Park’s appeal to families will Craigslist. The friends from Jersey diverse enclave in the north- finding an affordable place to month peak of $4,119 in May. get a boost next September,when its City began looking in the East Vil- west corner of the Bronx. He live in New York is a lot like finding Other spots with potential in- first high school is slated to open. lage but expanded their search. In Ihad lived in the neighborhood since true love:It takes sleuthing,luck and clude Murray Hill, where investor April, they found a 650-square foot, late 2006 but developed a wander- a willingness to expand one’s geo- condos are coming on the market,ac- Go East rent-stabilized two-bedroom with ing eye when he got a chance to take graphical pool. cording to Andrew Barrocas, chief the upper east side is one of the an eat-in kitchen for $2,276 a month. over the place he had been sharing. In an uncertain economy,reason- executive of The Real Estate Group. neighborhoods below 96th Street Ms. Iwankiw, a publicist at “I thought I should move to a ably priced areas like Bedford Park “It’s not just about knowing where rents have declined.The Real Quinn and Co., is delighted about better ZIP code,” says Mr. Muir, and Brooklyn’s Sunset Park are at- where to look but what type of Estate Group data show that rents no longer having to make the trek who works in corporate communi- tracting more attention.For those on building and size apartment to look for one-bedrooms dipped 7.4% be- across the Hudson. cations in Manhattan. His “grass is a tight budget who have their heart for,” Mr. Barrocas says. tween August 2007 and August “It was a killer,” she says. “I just greener” search took him to Brook- set on Manhattan, Harlem, Wash- Joseph Tammaro, an agent with 2008, to $2,352. The 70s, 80s and didn’t want to deal with the trains at lyn and Queens, then back to Bed- ington Heights and Inwood offer the Old Brooklyn Real Estate and a res- 90s east of Third Avenue have a night anymore.” ford Park. best hope. And despite vacancy rates ident of Sunset Park,says he’s seeing large inventory of units, many of “I realized I really love this area,” of a scant 1.29% to 3%, according to an influx of people priced out of oth- which owners rent directly on such COMMENTS? [email protected]

Now available on select routes. AmericanAirlines, AA.com and We know why you fl y are marks of American Airlines, Inc. oneworld is a mark of the oneworld Alliance, LLC.

September 15, 2008 | Crain’s New York Business | 39 CN012352 9/11/08 4:30 PM Page 1

Managing Talent in a Turbulent Economy

Join Crain’s New York Business and Workforce Management for this critical morning conference in New York City exploring talent management for all seasons, including the art of retaining and finding key people while managing through the layoffs, cutbacks and workplace restructurings that are rippling through the current business environment.

Hear keynote speaker Kevin Ryan, founder and former CEO of DoubleClick, and his com- pelling message about how to manage talent through both good times and bad. He'll also KEVIN RYAN join our panel of experts — moderated by Crain’s editor, Greg David and Workforce Manage- Founder and Former CEO DOUBLECLICK ment editor, John Hollon — for a lively panel discussion on this timely topic.

DATE Wednesday, October 29, 2008 TIME JANET HANSON 7:30 - 8:00am Registration Founder 8:00 - 8:30am Networking Breakfast 85 BROADS 8:30 - 9:15am Keynote – Kevin Ryan, founder and former CEO, DoubleClick 9:15 - 9:30am Networking Break 9:30 - 10:15am Panel Discussion 10:15 - 10:30am Q&A

VENUE Roosevelt Hotel RON THOMAS Former VP, Organizational Development Grand Ballroom MARTHA STEWART LIVING Madison at 45th Street New York, NY

TICKETS $139 for tickets if prepaid by October 8, $149 thereafter $1250 for tables of 10 if prepaid by October 8, $1500 thereafter To purchase tickets, go to crainsnewyork.com/events. RENEE RUSSELL Executive Director, Global Talent Management You must be pre-registered to attend this event. All tickets are non-refundable. AVON PRODUCTS For more information, please call the Event Hotline at 212.210.0739.

presented by CNYB 09-15-08 A 41 9/11/2008 6:38 PM Page 1

BUSINESS LIVES CORPORATE LADDER Brad Wilson Making room at the top Denihan Hospitality to nearly double its size and break into the boutique hotel business. PERSONNEL FILE COO leads expansion, In choosing Mr. Wilson, Deni- han tapped a veteran of the petit, COMPANY Denihan Hospitality foray into boutique trendy hotel category. He helped Group launch W Hotels Worldwide in 1998 TITLE Chief operating officer hotel business and turn it into an international 28- property powerhouse. He is credited AGE 46 BY JOYCE HANSON with building the operational back- RÉSUMÉ Chief executive, The bone of the brand, owned by Star- James Hotel Group; vice presi- hen Brad Wilson wood Hotels & Resorts Worldwide. dent, operations, W Hotels World- was a junior in Good chemistry wide; assistant general manager, high school, his Hotel Nikko at Beverly Hills family moved to mr. wilson joined Denihan at the Chicago from beginning of the year, when it HOBBIES Cooking, entertaining Philadelphia,W but he decided to stay bought Chicago’s James Hotel BIRTHPLACE Cambridge, Mass. behind. He lived in his own apart- Group,where he was chief executive. ment, bought a car and worked at “We didn’t know Brad at the time, Dunkin’ Donuts and McDonald’s but during our due diligence on The Denihan’s properties in New York after school. James, we found a chemistry with rely heavily on corporate business, “I learned a lot about being inde- him,” says Patrick Denihan, co-chief and many companies are curtailing pendent and how to manage multi- executive with his sister,Brooke Bar- their travel budgets these days. The

ple priorities. I was making dough- rett, of the eponymous company. Benjamin in midtown charges buck ennis nuts late at night, and I was a crew Mr. Wilson’s job is to map out a about $650 a night, while the chief at McDonald’s,” says Mr. Wil- plan to grow the company, which Affinia hotels in Manhattan, which son is well-cast to play the part of the food and beverage manager. son, who graduated from school ear- has eight properties in Manhattan serve mainly business travelers and branding guru. He’s certainly had Still, he credits his mother for ly to rejoin his family. and locations in Chicago and Wash- European tourists, charge about his share of humble jobs, though. giving him his big career boost. Af- The same self-starting and lead- ington, D.C. Management is keen $450 a night. ter holding several jobs at the ership qualities Mr.Wilson exhibit- to develop the James brand—the Denihan will rely on Mr. Wil- Going up Plaza,he moved back to Chicago to ed as a teenager are serving him well brainchild of Equinox gym founder son’s experience at a big hotel com- his first job in the hotel business help her run a bakery and catering in his career as a hotelier. Danny Errico and B.R. Guest pany under Barry Sternlicht, the vi- was as an elevator operator at the business. Last month, he was named chief restaurants’ Steve Hanson—and sionary former chief executive of Drake Hotel in Chicago. His lucky “I helped her launch three retail operating officer of Denihan Hos- plant it in Miami, Los Angeles and Starwood. Mr. Sternlicht’s depar- break came when buttons were in- businesses, which I decided was my pitality Group, a Manhattan-based New York City.The idea is to build ture in 2005 prompted Mr.Wilson’s stalled in the lifts and he rose to a M.B.A.,” he says. “Everything I re- family-run hotel business with 12 a brand similar to what Starwood move shortly thereafter to The position at the front desk. He then ally learned, I learned from my upscale properties including the did with the W Hotel. James Hotel Group. attended the Cornell School of Ho- mom.” James, Benjamin and Affinia But expanding during an eco- Tall and slim in a tailored suit tel Administration and got his first brands. The company has big plans nomic downturn is a bold challenge. and hip-looking glasses, Mr. Wil- New York job at the Plaza Hotel as COMMENTS? [email protected]

EXECUTIVE MOVES

ACCOUNTING & CONSULTING and continues as chief financial officer. Hartman & Craven: Caryn B. Keppler- HOT JOBS AlixPartners: Bruce Conforto, 56, joined Catalyst Investors: Gene Wolfson, 52, was Citrin, 50, joined as partner. She was as director. He was formerly chief named general partner. He was formerly formerly of counsel at Salans. information officer at Paramount Cards. a managing director at Citigroup. Hiscock & Barclay: Rick Fischbein, 66, WANTED: EXECUTIVE DIRECTOR Booz & Co.: Thomas A. Stewart, 60, was joined as partner. He was partner at named chief marketing and knowledge HIGH TECH & NEW MEDIA Sonnenschein Nath & Rosenthal. ORGANIZATION Fedcap Rehabilitation Services Inc. Vault.com Inc: officer. He had been editor and Jonathan Spaet, 52, was Robert Lanza, 51, joined as partner. He JOB DESCRIPTION Running a $64 million nonprofit that helps managing director at Harvard Business appointed executive vice president, U.S. had been partner at Sonnenschein Nath train those with physical or mental disabilities to enter the Review magazine. sales, a newly created position. He was & Rosenthal. workforce formerly vice president and general Mark Peroff, 60, joined as partner. He ADVERTISING & COMMUNICATIONS manager of advertising sales at Time was formerly partner at K&L Gates. MOST IMPORTANT TASK Fundraising, especially for new programs Porter Novelli: Lisa Rosenberg, 41, was Warner Cable. Schiff Hardin: Patricia A. Pileggi, 54, CREDENTIALS NEEDED Experience in job training and placement promoted to managing director, New joined as partner. She was formerly for disadvantaged populations York office, from partner and director, HOSPITALITY & TOURISM name partner at the Law Office of New York consumer industries group. Travel Ad Network: Jeffrey John DeKorte, Patricia A. Pileggi. SALARY Just under $200,000 41, joined as vice president, product RECRUITER Korn Ferry International EDUCATION development. He was president and chief MEDIA & ENTERTAINMENT Fordham University: Thomas A. Dunne, operating officer at LeisureLogix. American Express Publishing Corp.: Jay DOWNSIDE Filling the shoes of Susan Fonfa, who has led Fedcap 61, joined as vice president, government Wardle, 33, was named corporate sales for 14 years and is stepping down in January relations and urban affairs. He had been LAW director. He had been travel director at Fedcap, founded in 1935, provides job training and placement for vice president of public policy and Akin Gump Strauss Hauer & Feld: Rolf Travel + Leisure Golf magazine. more than 3,000 disabled people every year. The organization is external affairs at Verizon. Zaiss, 46, joined as partner. He was National CineMedia: Bennett Fogel, 47, best known for its custodial contracts, many of which are with Touro College: Michael Williams, 54, was formerly a senior attorney at Cravath was appointed senior vice president of government agencies to serve such sites as the Statue of Liberty. appointed dean of the Graduate School Swaine & Moore. business development and integrated —MIRIAM KREINAN SOUCCAR of Business. He was formerly a faculty Clifford Chance: Robert Thornton Smith, marketing. He was formerly executive chair at Capella University. 65, joined as partner. He was formerly a vice president of sales and marketing at partner at Linklaters. Univision. FINANCE & INSURANCE Dorsey & Whitney: E. Bradley Gould, 37, 3i North America: Bob Stefanowski, 46, joined as partner. He had been a partner REAL ESTATE was appointed managing partner and at Winston & Strawn. CB Richard Ellis: Tom Duke, 32, joined as formerly chief executive at Extra Hands Grade Success Academy. chairman. He was formerly president vice president. He was formerly senior and the Jack Orchard ALS Foundation. Pro Mujer International: Eugenia Acosta, and chief executive, GE Corporate EXECUTIVE PROMOTIONS managing director at Lansco. National Urban Technology Center: 54, was appointed director of human Finance Europe. J. Kenneth Watts, 52, was named chief resources. She had been director of The fastest way to get an announcement into Amalgamated Life Insurance Co.: Paul Crain’s is to submit details online. Fill out the form SERVICES operating officer and education division human resources at Sabre Mallen, 42, was promoted to executive at www.crainsnewyork.com/submit. The Academics in Motion: Jim Presbrey, 46, president, a newly created position. He Holdings/Travelocity.com. vice president from senior vice president, Executive Moves column is also available online. joined as vice president. He was was formerly principal at West Side 9th —sarah studley

September 15, 2008 | Crain’s New York Business | 41 CNYB 09-15-08 A 42 9/11/2008 8:16 PM Page 1

BBQ RESTAURANTS

Continued from Page 37 the pound at the counter. The cavernous Hill Country. Fette Sau Le Cirque and Daniel, has turned Lone Star connection ends at the boasts all-organic meats and his attention elsewhere at this far- sides and drinks, however. Real outdoor seating in good weather. west midtown meat temple. Mr. Texas barbecue joints don’t do Just a few blocks from the L train’s Lang’s style is milder and less much in those departments, but Bedford Street station (the first smoky than others, which he prefers Hill Country’s selection is on par stop in Brooklyn). because it emphasizes the flavors of with New York’s finest BEST ITEMS Pork his meats and seasonings. establishments. sausage, brisket BEST ITEMS Oklahoma jumbo beef BEST ITEMS Beef ribs, RESERVATIONS Not ribs, pulled pork pork sausage taken, and get there RESERVATIONS Not RESERVATIONS Not early. taken, limited taken, plenty of 354 Metropolitan seating. HILL COUNTRY seating. 30 W. 26th FETTE SAU Ave. (at Havemeyer 623 11th Ave. (at as they do in the German- St. (between Broadway this spot is also modeled on the Street),

West 46th Street); American barbecue markets in and Sixth Avenue) Texas-German style (the name is Williamsburg; items: istockphotos (212) 977-1500 Texas Hill Country, customers (212) 255-4544 German for “fat pig”) but operates (718) 963-3404 www.daisymaysbbq.com here order their cooked meat by www.hillcountryny.com on a smaller scale than the —steven a. shaw

BEST OF BOB LAPE

Other American, regionally Don’t Push Your Luck influenced restaurants. Allen & Delancey www.allenanddelancey.net With Your Push To Talk. 115 Allen St. (at Delancey Street), Manhattan. (212) 263-5400. The four-star Monteverde team does MAKE THE SWITCH TO VERIZON WIRELESS. double duty with a comfortably crowded mecca for new American Make your business instantly more productive by switching to the only Push to Talk service food. that comes with the Network. And right now you can get a great deal on one of our hardest- Beacon working phones. Verizon Wireless. The smart choice for Push to Talk. 25 W. 56th St. (between Fifth and Sixth avenues), Manhattan. (212) 332-0500. Waldy Malouf ’s wood-fired cooking of all-Amer- ican, seasonal food glows. Olana www.olananyc.com 72 Madison Ave. (between East Add Push to Talkk to any 27th and East 28th streets), Man- Nationwide voice plan hattan. (212) 725-4900. Chef Albert for only $ a month. Di Meglio delivers artfully done 5 modern American cuisine in this Plus, activate Push to Talk service salute to the Hudson Valley School on 5 or more new business lines and get a great deal on the latest of art. Push to Talk phone. Motorola AdventureTTM V750 Wildwood Barbeque ½ $ 99 www.brguestrestaurants.com 49 225 Park Avenue South (at East With new 2-yr. activation on any Nationwide voice plan when you 18th Street), Manhattan. activate 5 or more business lines. (212) 533-2500. In a playful urban- • Built to Military Spec durability for shock, rustic setting designed by David dust and temperature resistance Rockwell, former NYC motorcycle • Turn-by-turn directionsd withh VZ NavigatorSM cop “Big Lou” Elrose lays on a full range of “Q” styles. Bourbon Street Bar and Grille www.bourbonny.com 346 W. 46th St. (between Eighth and Ninth avenues), Manhattan. (212) 245-2030. A bilevel slice of New Orleans French Quarter de- cor replete with ex-Commander’s Palace chef Tommy Hines’ accurate take on NOLA’s flavorful food. Rack & Soul www.rackandsoul.com Foror PushPuP sh toto TalkTalk solutionssolluttions forfor youryour smallsma business, let Verizon Wireless be your “go-to” guy. 2818 Broadway (at West 109th Street), Manhattan. (212) 222-4800. New York’s fried chicken king, Call 1.800.VZW.4BIZ Clickk verizonwireless.com/pushtotalk Visit a Verizon Wireless store Charles Gabriel, and Mississippi VERIZON WIRELESS COMMUNICATIONS STORES See store for Return/Exchange Policy. barbecue pit master John Wheeler join forces.The Southern/soul food MANHATTAN Union Square 57 W. 57th St. 134 W. 34th St. 100 Wall St. & Water NASSAU Westbury SUFFOLK Smith Haven WESTCHESTER 342 Madison Ave. 859 Broadway btwn. 5th & 6th Ave. btwn. 6th & 7th Ave. (Closed Sat. & Sun.) Massapequa 49 Old Country Rd. East Northport 1 Smith Haven Mall Hartsdale and barbecue are of a high order at @ 43rd St. 212-206-7587 212-980-4860 917-351-8000 212-510-6160 5070 Sunrise Hwy. 516-937-2960 4000 Jericho Tpke. 631-382-3720 355 N. Central Ave. 212-856-6100 516-797-3880 631-499-1820 914-286-4120 this friendly, casual restaurant. Hablamos Español = Outstanding Activation fee/line: $35. IMPORTANT CONSUMER INFORMATION: Subject to your Major Account Agreement or Customer Agreement, Calling Plan and credit approval. Offer available for corporate-liable customers only. Up to $175 early termination fee = Excellent and other charges. Device capabilities: Add’l charges & conditions apply. Push to Talk requires compatible phone and is available only with other Verizon Wireless Push to Talk subscribers. Offers and coverage, varying by service, not available everywhere. Network = Very good details and coverage maps at verizonwireless.com. While supplies last. Shipping charges may apply. Limited-time offer. © 2008 Verizon Wireless. = Good

42 | Crain’s New York Business | September 15, 2008 CNYB 09-15-08 A 43 9/11/2008 3:05 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape bacon spaetzle, braised cabbage and crispy apple salad. It’s a huge chop, if a bit overcooked and dry. Seafood is always of interest here, from bacon-wrapped trout with potato-parsnip gratin to seared scallops served with parmesan gnocchi, balsamic red onions, celery root purée and lemon butter. The bayou-born sweet corn stew called maque choux joins lump crab DUANE PARK meat and sweet pepper broth to 157 Duane St. raise chili-crusted salmon to a new (between West Broadway level. Possibly prosaic sautéed cod and Hudson Street) gets a similar flavor boost from (212) 732-5555 creamed leeks, a truffled salad and www.duaneparknyc.com mushroom jus. ## The Southern influences contin- ½ ue through desserts ($8) such as CUISINE Contemporary Mexican chocolate tart and pecan American/Southern flair pie infused with Maker’s Mark whiskey. Blackberry or blueberry WINES 30 choices, six by the cobblers come with rosemary ice glass cream, and lemon curd tart with DRESS No code cherries and cherry coulis. An or- NOISE LEVEL Moderate to loud ange and almond torte is done up with brown butter ice cream and PRICE RANGE $20-$25 sliced strawberries. WINE MARKUP 125%-300% Bartending is of a high order at Duane Park,with the likes of a blood CREDIT CARDS All major orange margarita, as well as a gimlet, RESERVATIONS Recommended impeccably and appealingly blended. HOURS Mr. Locker, the operating part- Seven days, Lunch, buck ennis ner, also owns a retail wine shop in noon-3 p.m.; Dinner, 5:30-11 PUTTING IT ALL TOGETHER: Duane Park features wallpaper handcrafted in Italy and a chandelier from a Louisiana plantation house. Greenwich Village. It specializes in p.m.; Brunch, Sat.-Sun., 11:30 wines of small vintners. At the a.m.-3 p.m.; Afternoon Tea, restaurant, however, the wine list is Mon.-Fri., 3-4 p.m. ed with lemon risotto and mustard overly modest for the sophistication ####= Outstanding seed-roasted brussels sprouts, it be- of the overall operation. No doubt it ###= Excellent comes special. will grow. ##= Very good TriBeCa’s new The vaunted Berkshire pork #= Good Southern accent chop does a star turn with smoked COMMENTS? [email protected]

tal chandelier that once hung in a Duane Park blends Louisiana plantation house, and a bayou, Manhattan back bar made from a mantel that once adorned the New York Lambs modern; modest club. wine list should grow It all harmonizes amid hand- some period architectural details of the room. Old-fashioned? Perhaps, ery good food, atten- but elegantly so. tive service, civilized Chef Knight, a Texan well-sea- decor.” Those are soned by experience with great chefs among my notes after of that state, New Orleans and New dining at the new occu- York,blends bayou with Manhattan pantV of 157 Duane Street in restau- modern. rant-rich TriBeCa. This translates into appetizers It’s now called Duane Park, ($8 to $12) such as tuna tartare dropping “Café” from the name dressed in tahini sauce and fried long associated with the space under spinach leaves and presented with owner/chef Seiji Maeda. Now run- sesame seed flatbread—a colorful, ning the show are former Brit pop compelling combination. Barbe- tour manager Marisa Ferrarin; cued quail makes a vivid impression, Frank Locker, ex-Pittsburgh Steel- too, with a salad of black-eyed peas, ers safety; and executive chef Shawn farro and grilled speck.The Knight’s Knight. work with duck confit is pairing it Sixty-five seats are comfortably most agreeably with pear-fennel spaced for conversation in a room marmalade, caramelized onion, and designed by artist Paul Etienne goat cheese on brioche. Lincoln, Ms. Ferrarin’s husband. Every dish shows imagination in This is his first restaurant com- service of good taste.Louisiana crab mission and features almost a peri- cake is accessorized with rémoulade od look of more than passing re- and paddlefish caviar; and crispy finement. kataifi-wrapped shrimp are bathed Its elements are blue-and-white in passion fruit nage and flanked by toile wallpaper handcrafted in Italy pea-cucumber salad. from 18th-century etchings, a crys- Duane Park entrées reflect care- ful sourcing of ingredients and in- BEST OF BOB LAPE Other regionally novative styling of each dish. Pan- influenced restaurants PAGE 42 roasted chicken,even with rosemary jus, is no trailblazer, but when plat-

September 15, 2008 | Crain’s New York Business | 43 CN012208 7/17/08 4:31 PM Page 1

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